Agribank rolls out 100% penalty interest relief

By: Hertha Ekandjo

Agribank has started its Arrears Relief Programme, offering clients a 100 percent write off on penalty interest, subject to specific conditions.

The programme started in September 2025, designed to help clients who have fallen behind on loan repayment while supporting the bank’s recovery efforts.

Agribank chief executive officer Raphael Karuaihe said on Friday that the application process will run for six months, from 2 February to 31 August 2026. Clients are encouraged to apply at their nearest Agribank office during this period.

Karuaihe explained that the programme is open to all clients whose accounts are in pre-legal or legal status.

He said to qualify for the programme, pre-legal clients are required to pay at least 20 percent of their arrear , while legal clients must pay a minimum of 25 percent. The required payment applies to the loan instalment and interest portion only, excluding penalty interest.

Karuaihe said qualifying clients may receive credit bureau de-listing, voluntary tailored advisory services, and, where suitable, project publicity and marketing support, in addition to the penalty interest write-off.

Once the required portion of the arrears has been paid, the remaining balance will be ring-fenced, with no further interest charged on that amount.

According to Agribank, the ring-fenced balance can be repaid over a period of up to 60 months, through equal monthly, quarterly, or bi-annual instalments. Clients will be required to sign an addendum to their loan agreement to formalise the arrangement.

In cases where legal action has already been instituted, the repayment agreement will be concluded as an Order of Court.

Karuaihe added that clients must keep up with all loan instalments, or penalty interest will be reinstated and recovery processes resumed.

Default on any other loan obligations may also lead to the withdrawal of relief benefits. Relief under the programme is granted once per client, unless otherwise revised.