The Central Bank of Kenya on Thursday, October 1, issued new guidelines on Credit Reference Bureau (CRB) listing for loan defaulters.
This comes on the backdrop of the six-month grace period of suspension of CRB listing for loan defaulters expiring on Wednesday, September 30.
Under the new guidelines, financial institutions will from October 1, 2020, access the performance of all loans that were performing before April 1.Central Bank of Kenya Governor Patrick Njoroge addresses a news conference at the Central Bank's buildings on Tuesday, May 28, 2019.File
Perhaps the most important guidelines for borrowers is that loans that were performing before April 1, but went into arrears will have a three months period that elapses in December 2020 to regularize loans before being listed with CRB.
For loans that went into arrears after April 1, their performance will be determined from Thursday, October 1.
If the loan is still in arrears after 60 days from October 1, financial institutions will give notice of the intention to list them with CRB.
If a loan is not regularized after the 30-day period, the financial institution will then list the non-performing loans with the CRB.
The CRB listing relief was part of a stimulus package announced on March 25 to cushion distressed businesses and individuals from the effects of the coronavirus pandemic.
CBK governor Patrick Njoroge on Wednesday, September 30, confirmed the expiry of the suspension of CRB listing.
"In terms of the measures that are ending, that I think is clear, so from October 1 the banks will begin accessing their borrowers, then you will have three months to regularize what you were not paying.
"The point here is to just emphasize that we are going back to the normal operations and that is where we will become October 1," he explained.
Over 3.2 million Kenyans are blacklisted for defaulting on loans with data indicating that the number jumped from 2.7 million in 2019.Central Bank of Kenya (CBK) building in Nairobi.Simon KiraguKenyans.co.ke
- Beware15 April 2021 - 9:27 am
- cache of weapons15 April 2021 - 8:32 am
- Relief15 April 2021 - 8:25 am
- Implicated15 April 2021 - 7:45 am
- hope15 April 2021 - 7:23 am
- dangerous14 April 2021 - 7:33 pm
- this is why14 April 2021 - 7:24 pm
- Scaling Heights14 April 2021 - 7:44 pm
- Remarkable14 April 2021 - 6:57 pm
- easy money14 April 2021 - 5:07 pm
- good news14 April 2021 - 5:00 pm
- Unpaid rent14 April 2021 - 4:48 pm