The coronavirus rescue loans have totalled to Sh17.59 billion in April, reflecting the adverse effects of the virus on the economy.
Central Bank of Kenya (CBK) on March 23, lowered the cash reserve ratio for commercial banks to 4.25 from 5.25, a move that saw Sh35.2 billion released for lending to invididuals affected by the virus.
By April 25, the cash on lending had increased to Sh53.9 billion. The small margin on loan might have been caused by the strict conditions put in place by the banking regulator.
Businesses linked to the hospitality and tourism sector are the biggest borrowers with Sh8.02 billion, which is nearly half the funds. The agriculture sector comes second with loans accumulating to Sh2.94 billion. The real estate sector was also among the largest borrowers with loans totalling to Sh2.1 billion.
The three sectors accounted for more than 74 per cent. Companies in trade borrowed Sh1.8 billion, while those in manufacturing borrowed Sh1.29 billion from the coronavirus loan fund.
The country has 700 confirmed cases of coronavirus with 33 deaths. Sectors such as tourism and agriculture have already felt the pinch of the severe effects of the global pandemic following the restrictions implemented like travel restrictions and the social distancing.