KCB agrees to waive Sh430m penalties on NCPB loan default
KCB Group has agreed to waive Sh430 million in interest penalties the lender slapped the National Cereals and Produce Board (NCPB) for defaulting on a loan. The National Assembly’s Agriculture Committee heard that the bank had also committed to temporarily freeze interest chargeable on the Sh3.6bn loan with effect from July 1, 2021. The cash-strapped NCPB used its assets as collateral to secure a Sh3.6bn loan to finance part of the fertilizer subsidy in the year to June 2017 but failed to repay. The KCB has also agreed to grant a waiver of Sh30 million on negotiations fees and utilization of Sh2.65bn in the NCPB fertilizer accounts to partially offset the loan.
KCB Group has agreed to waive Sh430 million in interest penalties the lender slapped the National Cereals and Produce Board (NCPB) for defaulting on a loan. The National Assembly’s Agriculture Committee heard that the bank had also committed to temporarily freeze interest chargeable on the Sh3.6bn loan with effect from July 1, 2021. The cash-strapped NCPB used its assets as collateral to secure a Sh3.6bn loan to finance part of the fertilizer subsidy in the year to June 2017 but failed to repay. The KCB has also agreed to grant a waiver of Sh30 million on negotiations fees and utilization of Sh2.65bn in the NCPB fertilizer accounts to partially offset the loan.