Loan Restructuring in Kenya: Reduce Monthly Repayments and Avoid Default

What is loan restructuring?

Loan restructuring is changing loan terms to make repayment manageable. It can include extending the repayment period, adjusting the repayment schedule, or combining loans into one plan.

When restructuring makes sense

• Monthly repayments are too high for current income
• Business cash flow changed and needs a new schedule
• Multiple loans cause missed dates and penalties
• You want to avoid default and protect your credit profile

Documents to prepare

• Loan statements and repayment history
• Bank statements and income evidence
• Expense breakdown and current budget
• Reason for restructuring with a realistic plan

Step by step approach

1. Assess the gapCalculate what you can pay comfortably per month.
2. Prepare evidenceStatements, income proof, and a repayment proposal.
3. Negotiate termsAdjust period, schedule, and penalties if possible.
4. Commit to the planSet reminders and pay before due dates to rebuild stability.

Next reads

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