The global Covid-19 pandemic has deepened pressure on shareholder dividends as companies move to hold onto the money they have earned in the last financial year in the wake of the uncertainty.

Companies are considering holding on to the cash to ensure they have enough reserves to carry out their businesses after the pandemic.

Several regulators around the world have suspended dividend distribution for 2019 and 2020 for banks until the end of June in order to boost capital and support lending during this period.

“Insurers should avail policy holders a three-month grace period. The grace period may be over and above any contractual premium holidays already in place for existing policies,” IRA chief executive Godfrey Kiptum said in a statement Tuesday.

In the life insurance segment, policy contracts have specific commencement dates and maturities and customers have to pay, failure to which they lose the policy in the first three years or get refunded a small portion of the premiums they have been paying, also known as a surrender value.

Donations to the national emergency kitty launched by President Uhuru Kenyatta late last month to support vulnerable Kenyans in the wake of coronavirus has hit Sh1.29 billion.

In a statement Tuesday, chairperson of the Covid-19 Emergency Response Fund Jane Karuku said that the donations include Sh917.77 million in cash and Sh370.3 million in kind.

The kitty holds money from civil servant salary cuts, wealthy Kenyans, local corporates, multinational companies and development partners.