Popular digital lender, Zenka Digital, has announced a partial write-off of past interests due owed by customers across its entire loan portfolio.
Following this move, a total of Ksh166 million in outstanding debt will be cleared off its books. Those that will benefit from this move are borrowers with non-performing as well as those severely impacted by the adverse effects of the Covid-19 pandemic.
Zenka country manager, Duncun Motanya, commented on this by saying, “As a socially responsible lender, we routinely and thoroughly analyze prevailing market situations and act proactively and pre-emptively to contribute to the country’s economic recovery by helping our customers regain their financial balance and grow”.
This move is expected to significantly reduce the defaulters’ financial burden, facilitating financial balance regain.
Zenka’s debt write-off is part of the company’s strategic initiatives aiming to support its customers, majority of whom are micro, small and medium enterprises (MSMES).
It will be accompanied by another initiative to facilitate debt repayment for Zenka’s customers, with a 3-day grace period to borrowers struggling to repay on time.
No interest will be charged during the first three days past the due date and the grace period will be provided to all Zenka’s customers with no exemptions or additional costs.
“We’ve been promoting responsible lending since the very first day in the Kenyan market. Meticulous creditworthiness assessment combined with smart financial products and flexible repayment options enabled us to open up new possibilities to millions of Kenyans and motivate them to work harder and think smarter,” Motanya added.
Zenka currently offers its customers a flexible payment plan and customers who can’t repay on the agreed date are encouraged to contact the lender and work out a solution that will work for both parties without the need for escalation.
‘’The highly challenging post-COVID period, resulting in massive loss of employment and closure of micro-enterprises, requires even more flexibility on the lending industry’s side,” Motanya said.