Coronavirus: Absa to pay SME suppliers in two weeks : The Standard

Absa Bank Kenya PLC has announced measures to support its customers and ensure working capital is available for Small and Medium Enterprises (SME). This, in a bid to enable its customers to cope with any financial difficulties during a period when the country is battling the highly contagious virus, Covid-19. “In order to help Small and Medium Enterprises (SME) meet their financial obligations during this period, we shall endeavor to pay all supplier invoices within 14 days. Additionally, we will work towards paying all invoices of Kes1 million and below, within 7 days,” the bank said in a statement.

SEE ALSO :CBK accuses lenders of neglecting clients

Kenya has confirmed seven cases of coronavirus. “Four more suspected cases admitted at Mbagathi Isolation Unit since the last update and one case has tested negative and is being processed,” Health CS Mutahi Kagwe said on Friday. Absa, formerly Barclays Bank, Kenya, further urged its customers who may be experiencing financial strain due to the prevailing circumstances to discuss a suitable repayment plan with it.

For More of This and Other Stories, Grab Your Copy of the Standard Newspaper.   Read Now »

“We will provide options for customers to either restructure their loans by reducing their monthly instalments over a period of up to one year, or take a short-term repayment holiday,” it said. Just like Safaricom, Absa Bank announced that it has eliminated transaction fees for small amounts and increasing daily digital transaction limits in order to encourage cashless transactions.

SEE ALSO :Barclays gives way to Absa Bank at the bourse

“We have waived all transaction fees on money transfers between mobile wallets and bank accounts until 30 June 2020. Additionally, customers will now deposit up to Kes150, 000 per transaction,” read the statement. Suppliers The Government also announced that a special fund of Sh14 billion has been set aside to pay the genuine suppliers after the traders were subjected to scrutiny. A brief from State House says the issue was discussed before the agreement was arrived at. “On pending bills, the Cabinet was briefed on the status of outstanding payments in the Prisons Department and the National Youth Service and resolved to set up a Sh14 billion special fund to pay genuine suppliers,” reads part of the brief.

SEE ALSO :Court summons Absa Bank over Islamic banking facility

The move came following complaints they are suffering because the department had refused to settle their pending bills. Some say they have sold all their properties to stay afloat as banks have auctioned them. This, is as the coronavirus crisis batters economies worldwide. Globally, the pandemic has killed 10,495 people and infected 255,729.

Do not miss out on the latest news. Join the Standard Digital Telegram channel HERE.

Related Topics

Absa BankSmall and Medium EnterprisesSMEsCoronavirus