Bankers through their representation in the Kenya Bankers Association (KBA) have called for the trading of discussion on growth with survival as the Covid-19 pandemic sweeps through the country.
According to the KBA Economic bulletin for the first three months of the year, concerns have switched to the containment of the virus and away from weakening growth as was characterized in much of 2019.
“Then our concerns were on one hand, a weak global economy with an evident disconnect between rosy headline growth numbers and weak demand at household and enterprise level,” noted KBA Director of Research and Policy Jared Osoro.
The Bankers association recommends the implementation of financial regulation measures and the introduction of non-conventional monetary policy initiatives such as quantitative easing to spare the country from seeing the worst of the pandemic.
Moreover, the banking sector report underlines finance as an integral part of addressing the economic fallout to encompass the support of the medical chain and services.
“At business levels, the transmission channels such as costs need to be understood so that appropriate remedial proposals can be formulated to help minimize such costs,” notes the report.
The report sees a hit on the local economy including credit risks elevation from resulting credit crunches and job redundancies from severe supply chain disruptions.