Connect with us

Hi, what are you looking for?

Capital Business
Capital Business
The regulator said the withdrawal was made in response to numerous complaints over misuse of the Customer Information Sharing (CIS) by the unregulated digital and credit-only lenders./FILE

Headlines

CBK suspends listing of CRB borrowers owing less than Sh1,000

NAIROBI, Kenya Apr 15 – Central Bank of Kenya has suspended the listing of Credit Referencing Bureau (CRB) borrowers owing less than Sh,1000.

The new order will benefit those who have previously defaulted, and future borrowers.

Under the new measures issued by the regulator, issuance of first time CRB clearance certificates (which usually goes for Sh2,000) will now be free.

“With immediate effect, CBK has withdrawn issuance of approvals to mobile-based, unregulated digital and credit-only lenders as third party credit information providers to CRBs,”  the statement issued stated.

The regulator said the withdrawal was made in response to numerous complaints over misuse of the Customer Information Sharing (CIS) by the unregulated digital and credit-only lenders.

The lenders has also been faulted for their poor responsiveness to customer complaints, an issue which has previously been raised by CBK boss, Patrick Njoroge as he called for tough policing of digital lenders as per the National Payment Systems Act.

Sacco Societies, regulated by Sacco Societies Regulatory Authority (SASRA)have been included as authorized subscribers of credit data to CRBs; this means borrowers with good borrowing history can receive good reports on CRB card.

“These SACCOs will now submit borrowers information to CRBs and also receive credit reports directly from them.

Borrowers whose loans ceased ‘performing’ effective April 1st  will not be listed for six months after CBK banned negative credit information for such borrowers.

Advertisement. Scroll to continue reading.

“Consequently, loans that fall in arrears from April to September 30,2020 will not lead to the blacklisting’ if the borrower on the CRBs,” the statement issued noted.

Click to comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...