The Central Bank of Kenya (CBK) announces the suspension for a period of twelve months, of the listing of negative credit information for borrowers with loans below Kenya Shillings Sh5 million, whose loans were performing previously, but have become non - performing from October 1, 2021.
CBK suspends blacklisting of Kenyans with loans less than Sh5 million
Good news for Kenyans with loans
This follows the publication of Legal Notice No. 225 of November 5, 2021, by National Treasury and Planning Cabinet Secretary Ukur Yatani on the recommendation of CBK, pursuant to regulation 18 (7) of the Banking (Credit Reference Bureau ) Regulations, 2020 (Regulations).
Consequently, loans below Sh5 million that fall in arrears from October 1, 2021 to September 30, 2022, will not lead to the "blacklisting” of the borrower on the Credit Reference Bureaus (CRBs).
Further, CRBs will not include in any credit report, any negative credit information for loans of a customer less than Sh5 million submitted to the CRB from October 1, 2020, to September 30, 2021, for a period of 12 months from October 1, 2021, to September 30, 2022.
This is one of the intervention measures that were announced on October 20, 2021, in light of
the exceptional circumstances from the Covid-19 pandemic and in particular aiming to shield Micro, Small and Medium Enterprises (MSMEs) from the adverse impact.
Over the last decade, Kenya has developed a robust Credit Information Sharing (CIS) mechanism for the banking sector.
The mechanism has facilitated the development of a credit history for Kenyans to enable them to access cheaper credit.
This is particularly important for those borrowers who do not have collateral such as title deeds that have traditionally been used to secure credit.
The framework has been strengthened over time, most recently in April 2020,with the issuance of revised Regulations
JOIN OUR PULSE COMMUNITY!
Eyewitness? Submit your stories now via social or: