President Uhuru Kenyatta announced that Kenyans with a negative listing on Credit Reference Bureaus (CRB) will not be recorded.
Speaking during the Mashujaa Day celebrations, President Kenyatta announced that borrowers with less than Ksh5 million, who had been listed in Credit Reference Bureau's as of October 2020 to date, will not have their records incorporated in their credit reports for 12 months.
The President directed the Treasury to work with the necessary stakeholders and ensure the recovery of the Micro, Small and Medium Enterprises (MSMEs).
Uhuru ordered the suspension of CRB listing in an effort to offer relief to MSMEs in the existing tough economy.President Uhuru Kenyatta inspecting a guard of honour during Mashujaa Day celebrations at Wang'uru stadium in Kirinyaga County on October 20, 2021PSCU
Uhuru directed the relevant authorities to effect a halt of listing in CRBs for loans less than Ksh5 million for a period of 12 months to end September 2022 expressly to direct borrowers.
"The necessary authorities, will for loans less than Ksh5 million effect the moratorium of listings in CRBs for a period of 12 months to the end of September 2022," Uhuru stated.
"Further, borrowers with loans below Ksh5 million listed on CRB from October 2020 to date will not have that their listing incorporated in their credit report for the next 12 months ending September 2022," he added.
The President acknowledged that some of the MSMEs continue to struggle to get back to a sound footing following the adverse effects of the pandemic.
The Head of State also directed banks and financial institutions to accommodate customers who wish to restructure their banking facilities.
In April 2020, after Uhuru made the directive on CRB listing, Sam Omukoko, the Group Managing Director of Metropol CRB clarified that there was no set mechanism preventing the banks from using data recorded before April 1, to assess one's creditworthiness.
Speaking on Citizen TV on Thursday, April 9, 2020, Omukoko stated that the CRB association was in consultation with the Central Bank (CBK) to chart out clear guidelines on how to navigate these possibilities.
On Thursday, October 1, CBK issued new guidelines on CRB listing for loan defaulters. Under the new guidelines, financial institutions were to access the performance of all loans before April 1.
Over 14 million Kenyans are blacklisted for defaulting on loans.President Uhuru Kenyatta assenting to bills at State House on March 30, 2021.PSCU
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