Saturday July 6, 2019-The Central Bank of Kenya (CBK) has passed a new circular that will rescue hundreds of Kenyans from being listed with the Credit Reference Bureaus (CRBs).
According to reports, up to 2.7 million Kenyans may be released from the clutches of CRBs after CBK ordered banks to review their listing rules.
The new circular stated that an individual will be considered for CRBs listing if they fail to pay either a bank or mobile money app loan for six months.
The circular, however, does not apply to mobile lenders who work outside the scope of the banking regulator and online users that involve an estimated 500 players.
CBK noted that a technical team that researched into the matter found that one of the biggest problems of CRBs was that normal loans were treated differently from mobile ones.
This, according to the regulator, has led to mass listings of individuals who failed to repay their loans after 30 days.
“Among the challenges identified by the technical working group were the difficulties in applying the current data specification template to no traditional forms of credit such as digital loans,” stated CBK Director of Banking Supervision Gerald Nyaoma in the circular.
CBK has now given all banks, micro-finance, and CRBs three months to start using the new template.
The Kenyan DAILY POST