NAIROBI, Kenya, Oct 3 – KCB Bank Kenya has announced a commercial commitment to aid the rapid reopening of public and private schools with a wide variety of financial support solutions including loans of up to Sh250 million among other products.
The commitment is expected to boost ongoing preparatory efforts by academic institutions raring to reopen the facilities earlier closed due to the Covid-19 pandemic.
Speaking when he announced KCB Bank Kenya’s new Learning Institutions Proposition, KCB Group CEO Joshua Oigara said the bank had designed a range of tailor-made solutions to ease school reopening pressures.
The Bank, he disclosed is currently working with over 23,000 learning centres to deliver a seamless experience in
The Bank, Oigara said has introduced a new solution for financing infrastructure development, specifically targeting to meet the key compliance directives issued by the government in regards to COVID 19 back to school preparedness. Both public and private schools can now access loan facilities to support and meet the reopening guidelines set by the Ministry of Education and Ministry of Health.
“Specifically, we are offering secured and unsecured loans and overdrafts with flexible terms to schools for initiatives such as infrastructure development,” Oigara said at a function graced by Education Cabinet Secretary Prof George Magoha.
Conscious of the reopening challenges facing both public and private schools, KCB Bank Kenya, Oigara said is extending asset-based finance scheme loans to cater for water tanks, hand washing points, gloves, masks, fumigation services, desks, chairs and all hygiene and sanitization needs, required for back to school activities.
“For both institutional and staff needs, we will finance IT equipment, generators, solar installation, new and used personal vehicles and insurance premium finance,” he said, adding that, “The education sector is a key driver to the country’s economic agenda and the Bank is committed to playing a catalytic role in supporting them through this phase. We have worked out an all-inclusive proposition which gives the learning institutions end to end support to achieve the guidelines set for reopening.”
To cushion customers from the adverse effects of the Covid-19 pandemic to date, KCB Bank has approved the restructuring of loans worth Kes 115 Billion to its customers.
For academic institutions, the bank has restructured facilities worth over Sh1Billion due to the reduced cash flows resulting from the closure of schools. “Additionally, we have also offered repayment holidays during the period of school closure. This is to give learning institutions some relief as they get their finances and cashflows back in
order. We pledge to continue walking this journey with our learning institutions, and we see this proposition as our support in this regard,” Oigara said.
While welcoming KCB’s support, Prof Magoha said: “We are looking at partnerships to ensure that we get the institutions ready to effectively offer learning services to all learners while at the same time guaranteeing the safety and well-being of the stakeholders in the education ecosystem. We are glad to see the Bank offering both financial and non-financial support towards this. The Bank has supported the education sector through various initiatives since 2007, playing an instrumental role that has seen the transition rate to university at 79% and completion rate of 99% from year to year.
The solution will also enable schools to provide personal protective equipment to staff and students who do not have access to the same. Schools, especially boarding schools will be required to fumigate their premises every so often and the bank is also keen to finance this need.
The Bank will continue financing of hardware, software and training costs to ensure that the schools can carry on with the virtual learning classes even as they plan to reopen.
KCB Bank will continue providing unsecured loans and overdrafts for salaries and short-term expenses for the schools because as a bank we are cognizant to the fact that schools have not been receiving any income in the last 8 months.