Africa Financial Sector Responses to COVID-19 - Kenya

Jul 28, 2020

As a Partnership committed to the African financial sector (AFS) development and resilience, Making Finance Work for Africa (MFW4A) has implemented a number of recent initiatives to strengthen the resilience of the African financial sector.

In addition to its webinars series and discussions aimed at identifying the sector's difficulties and solutions, a portal dedicated to domestic and international responses to the impact of COVID-19 on the regional financial sector has been set up.  The exercise consists in monitoring, collecting and classifying by country or region the measures taken by governments, central banks and DFIs in in support of the AFS vis-à-vis the financial impact of the pandemic. 

This page presents measures and initiatives by the Kenyan government, national central bank and Development Finance Institutions (DFIs) in support of a resilient domestic financial sector facing the effects of the COVID-19 pandemic.

Disclaimer: This page contains information and links from third parties. These links are being provided as a convenience and for informational purposes only; they do not constitute an endorsement or an approval by MFW4A.

Instrument

Institution

Financing volume

Description 

Regulatory measures

Central Bank of Kenya

N/A

(March 17, 2020) The central bank recommends that commercial banks :  
* Eliminate bank charges for transactions between a bank account and a mobile wallet;
* Increase the maximum limit for money transfers by mobile phone for Small and medium enterprises (SMEs).

Regulatory measures

Central Bank of Kenya

N/A

(March 18, 2020) The central bank formalizes an agreement with commercial banks to restructure their portfolios of non-performing loans that are on the rise due to the negative impact of Covid-19.

Multilateral Line of Credit

World Bank

USD 1 billion

(May 20, 2020) World Bank Approves USD 1 Billion Financing for Kenya, to Address COVID-19 Financing Gap and Support Kenya’s Economy.

Regulatory measures

Central Bank of Kenya

N/A

(June 29, 2020 The central bank extends its free mobile money payments measure by 6 months.

Multilateral Line of Credit

International Finance Corporation USD 50 million

(July 22, 2020) Equity Bank Kenya has secured a USD 50 million loan to help increase its working capital and trade-related lending to Small and Medium Enterprise (SME) clients.