No More Being Blacklisted On CRB For Those Owing Less Than Ksh 1,000

Kenyans will no longer be blacklisted on the Credit Reference Bureau (CRB) in the event they default a loan less than 1,000 shillings according to a new directive from the Central Bank of Kenya (CBK).

The move by CBK comes after data that showed that at least 3.5 million Kenyans are blacklisted on CRB with more than 500,000 of them having been blacklisted for defaulting 200 shillings and below.

The majority of Kenyans who have been blacklisted on CRB for defaulting to pay back mobile money loans whose CBK once described as “enhanced Shylocks who use mobile technology to swindle poor Kenyans.”

“A minimum threshold of 1,000 shillings has now been set for negative credit information that is submitted to CRBs by lenders. Borrower’s information regarding non-performing loans of less than 1,000 shillings will, therefore, not be submitted to CRBs,” said CBK in a statement.

Those who have previously been blacklisted for owing less than 1,000 shillings have every reason to smile as CBK has ordered them to be delisted.

“Borrowers that were previously blacklisted only for amounts less than 1,000 shillings will be delisted,” said CBK.

According to CBK, first-time CRB clearance certificates will be provided by CRBs at no charge. “This is particularly beneficial to Kenyan youth and graduates who are seeking employment.”

Going forward, mobile money lenders will not have the powers to share information of their borrowers to CRBs. The power for mobile lenders to submit information about their customers who have defaulted on loans with CRBs has been withdrawn.

READ: Here Is All You Need To Know About the New CRB Rules

“With immediate effect, CBK has withdrawn the approvals granted to unregulated digital (mobile-based) and credit-only lenders as third-party credit information providers to CRBs,” said CBK.

The new directives by the Central Bank of Kenya are likely to hit hard on mobile lenders who have been using the CRB as the only tool to threaten Kenyans who default on loans given.

READ: Over 3.2 Million Kenyan Loan Defaulters Have Been Blacklisted On CRB