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“With immediate effect, CBK has withdrawn issuance of approvals to mobile-based, unregulated digital and credit-only lenders as third party credit information providers to CRBs,” the statement issued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