CBK Sets New Rules For CRB Listing

Central Bank of Kenya (CBK) building in Nairobi.
A file image of the Central Bank of Kenya (CBK) building in Nairobi.
Simon Kiragu

The Central Bank of Kenya has set new rules to guide the listing of loan defaulters with the Central Reference Bureaus (CRBs).

Through a Gazzete Notice No 45 seen by Kenyans.co.ke,  the CBK Digital Credit Providers Regulations of 2022 stipulates that digital lenders must notify loans defaulters 30 days before submitting their details to CRBs.

CBK adds that the 30-day notice must be done in writing or through electronic means.

jobseekers queuing on Wabera Street, Nairobi, waiting to be interviewed by The Sarova Stanley on May 26, 2018
Jobseekers queuing on Wabera Street, Nairobi, waiting to be interviewed by The Sarova Stanley on May 26, 2018
Daily Nation

"A digital credit provider who intends to furnish negative information to a bureau with respect to a customer shall, in writing or through electronic means, notify the customer of the intention to submit the negative information at least thirty days before submitting the negative information to the bureau," reads part of the new law.

Additionally, after defaulter's information is submitted to the CRB, digital leaders will further be required to notify their customers of the same.

"Digital credit providers who have furnished credit information to a bureau shall, within thirty days from the date the information was furnished to a bureau, notify the customer that the customer's credit information has been forwarded to the bureau," adds the regulation.

In regards to loan defaulters with an outstanding balance of Ksh1,000 and below, digital lenders have been banned from sharing the customer's information with CRB.

"A digital credit provider may obtain credit information of its customers from a licensed Credit Reference Bureau, where such information is reasonably required for the discharge of the functions of the digital credit provider or the licensed credit reference bureau.

"However, a digital credit provider shall not submit negative credit information of a customer or any other person to a credit reference bureau where the outstanding amount relating to the credit information does not exceed one thousand shillings," read the regulations in part.

The move by CBK will caution loanees as many Kenyans rely on loans from digital leaders given the short time it takes for the loan to be processed.

The new law was also mentioned by the National Treasury Cabinet Secretary, Ukur Yatani, during his budget estimates statement in Parliament on Thursday, April 7.

The move by the government agency barely comes days after President Uhuru Kenyatta signed the Employment (Amendment) Bill which bars potential employers from asking for CRB clearance for job seekers unless they are offering them employment.

President Uhuru Kenyatta on Monday at State House, Nairobi signed into law five parliamentary bills among them the 2022 Supplementary I Appropriation Bill (Supplementary Budget).
President Uhuru Kenyatta signs into law five parliamentary bills on Monday, April 4, at State House, Nairobi.