Kenya’s leading bank by customer size Equity Bank has announced its plans to stop giving unsecured and micro loans in a bid to cushion its profit jar from loan losses.
This implies that salaried workers and owners of small businesses are nearing tough times.
Equity said in a Tuesday statement that announced it is cutting down unsecured and micro loans in a bid to comply with a new set of global accounting rules on loan loss covers.
Business Daily reports that the group’s chief executive James Mwangi said unsecured and small business loans are deemed risky would be out of their focus ahead of the coming into force of the new guidelines, known as International Financial Reporting Standard (IFRS) 9.
The new guidelines are meant to come into force on January 1, 2018.