Nazir Jinnah Proposes Loan Moratorium To Ease Financial Strain For Businesses Affected By Floods

NAIROBI, Kenya- Businessman Nazir Jinnah has called on the Government to move with speed and alleviate the suffering of Kenyans affected by the ongoing heavy rains.

According to Government statistics, more than 100 people have been killed by the floods in various parts of the country, and their livelihoods are entirely or severely destroyed.

There has been an outcry among Kenyans over the sluggish manner the Government has handled the crisis even as the weatherman warns of more downpour in the coming days.

Jinnah, a business mogul within the hospitality sector, proposes the Kenyan Government borrow a leaf from that of Dubai, by introducing relief measures that will alleviate the financial burden of Kenyans affected by the floods.

With key corridor roads rendered impassable, he argues the ripple effect will go beyond human suffering and will also injure the economy.

“This environmental catastrophe has not only inflicted damage on infrastructure but has also placed significant strain on individuals burdened with loans and debt. As the situation worsens, with forecasts predicting more rainfall until mid-next month, the livelihoods of many residents are hanging in the balance,” he said in a statement to Newsrooms on Monday.

One way to alleviate suffering according to Jinnah is for President William Ruto led Kenya Kwanza administration to issue a loan moratorium of up to six months, so that affected businesses and individuals can restructure their financial obligations.

“This will help them to regain their footing in the aftermath of this disaster,” the businessman said.

In Dubai, the Central Bank has since issued a loan moratorium in response to a similar crisis.

The Dubai Central Bank issued a loan moratorium, granting relief to borrowers with car loans and home loans.

Jinnah now urges the Central Bank of Kenya to follow suit and instruct banks to allow for debt restructuring, similar to the proactive measures taken by Dubai authorities.

“The impact of the floods extends beyond physical damage, as individuals and families face the daunting task of rebuilding their lives amidst financial uncertainty.

“With harvesting activities at risk and livelihoods in jeopardy, there is an urgent need for comprehensive support and intervention from the government and financial institutions," he added.

The floods have wreaked havoc in Kenya’s Capital Nairobi, a business hub for East Africa, and has also claimed dozens of lives.

Due to the current crisis, the Government has since postponed the opening of primary and secondary schools to May 6.