The Central Bank of Kenya has set new rules that will dictate listing of loan defualters with the Central Reference Bureaus CRB.
This is through Gazzete Notice No 45 which is the CBK Digital Credit Providers Regulations of 2022.
In one of the rules, the notice says that digital lenders MUST notify loans defaulters 30 days before listing their details to CRB.
Additionally, CBK has said that the 30-day notice to defaulters must be done in writing or through electronic means.
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“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.
Another good news if for defaulters with balances of Ksh 1000 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.
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