A sigh of relief for Kenyans especially youth, as CBK revises CRB Regulations.
Through press statement, CBK has announced that individuals “blacklisted” only for amounts less than Ksh.1,000 will be “delisted.”
CBK has also indicated that a minimum threshold of Ksh.1,000 been set for negative credit information that is submitted to CRBs by lenders.
“Borrower’s information regarding nonperforming loans of less than Ksh.1,000 will therefore not be submitted to CRBs, and borrowers that were previously “blacklisted” only for amounts less than Ksh.1,000 will be delisted”, read part of statement
Another good news is that CRB clearance certificates will be provided at no charge.
“First-time CRB clearance certificates will be provided by CRBs at no charge. This is
particularly beneficial to Kenyan youth and graduates who are seeking employment” added the statement.
SACCOS
SACCOS will also something to smile about after after CBK gives them a green light to access CRB information for those members who wish to access loans.
“SACCO societies regulated by the Sacco Societies Regulatory Authority (SASRA)
have now been included as authorized subscribers of credit data to CRBs. These
SACCOs will now submit borrowers’ information to CRBs and also receive credit
reports directly from them,” further noted the CBK.
Unregulated mobile lenders
Following numerous public complaints over misuse of unregulated digital (mobile based) lenders, CBK has cracked the whip by barring unregulated mobile lenders from listing Kenyans on Credit Reference Bureaus (CRBs).
“With immediate effect, CBK has withdrawn the approvals granted to unregulated digital (mobile-based) and credit-only lenders as third party credit information providers to CRBs.
“The withdrawal is in response to numerous public complaints over misuse of the CIS by the unregulated digital and credit-only lenders, and particularly their poor responsiveness to customer complaints,” the CBK noted in a statement.
Loans between April 1 to September 30, 2020
Consequently, loans that fall in arrears from April 1 to September 30, 2020,
will not lead to the “blacklisting” of the borrower on the CRBs.
This is one of the emergency measures that were announced on March 25, 2020, in light of the exceptional circumstances from the Coronavirus pandemic and aiming to shield borrowers from the adverse impact.