Zenka Digital has announced a partial write-off of past interests due owed by customers across its entire loan portfolio.
This will see a total of Sh166 million in outstanding debt written off. The mobile lender says the beneficiaries are borrowers with non-performing loans as well as those severely impacted by the adverse effects of the pandemic.
“As a socially responsible lender, we routinely and thoroughly analyze prevailing market situations and act proactively and pre-emptively to contribute to the country’s economic recovery by helping our customers regain their financial balance and grow,” said Zenka country manager Duncun Motanya.
The Digital lender expects the move to significantly reduce the defaulters’ financial burden. The move is the first of the company’s significant strategic initiatives aiming to support its customers, the majority of who are micro, small, and medium enterprises (MSMEs).
Zenka will then add another initiative to facilitate debt repayment for Zenka’s customers, with a 3-day grace period for borrowers struggling to repay on time.
During this time, no interest will be charged and the grace period will be provided to all Zenka’s customers with no exemptions or additional costs.
“We’ve been promoting responsible lending since the very first day in the Kenyan market. Meticulous creditworthiness assessment combined with smart financial products and flexible repayment options enabled us to open up new possibilities to millions of Kenyans and motivate them to work harder and think smarter,” Motanya added.
Customers who can’t repay on the due date are encouraged to contact the lender and work out a solution that will satisfy both parties without the need for escalation.
‘’The highly challenging post-COVID period, resulting in massive loss of employment and closure of micro-enterprises, requires even more flexibility on the lending industry’s side,” Motanya said.
