The decision to identify and repossess assets of individuals and firms that have refused to repay bank loans in collapsed banks is welcome.
It is immoral for the borrowers to freeze repaying their debts yet individuals whose hard-earned savings that were used to support the borrowing are wallowing in poverty.
The decision to identify and repossess assets of individuals and firms that have refused to repay bank loans in collapsed banks is welcome.
It is immoral for the borrowers to freeze repaying their debts yet individuals whose hard-earned savings that were used to support the borrowing are wallowing in poverty.
The refusal to repay the loans is made worse with the understanding that some of the banks collapsed on mounting loan defaults.
Therefore, we support the decision of the Kenya Deposit Insurance Corporation (KDIC) to launch the search for individuals and businesses that defaulted on loans tapped from 27 collapsed banks.
The collapsed banks, excluding Chase Bank and Imperial Bank, had unpaid loans of Sh45.51 billion at the end of June 2018, reflecting the extent of the default.
KDIC needs to recover this money and increase the compensation for depositors in collapsed banks as well as third party investors through corporate bond issued to the failed lenders like Imperial Bank.
The Central Bank of Kenya indicates that some of the borrowers stopped servicing loans once the lenders were placed under receivership.
PAYE Tax Calculator
Note: The results are not exact but very close to the actual.
