CBK Urges Kenyans to Repay Loans and Improve Credit Score on CRBs: ‘Honor Your Debt Obligations’

  • President William Ruto has asked the Central Bank of Kenya (CRB) to work on Credit Reference Bureau (CRB) reforms that will give Kenyans better access to credit according to their scores
  • CBK posted an update on the same subject, stating that it is working with CRBs to align them with best practices
  • The regulator, however, called on borrowers to honor their debts and engage lenders in case they face repayment difficulties.

Kenyans who take loans from commercial banks and other lenders should be responsible and repay their loans on time, the Central Bank of Kenya (CBK) has said.

CBK Governor Patrick Njoroge speaking at a past ceremony in Nairobi. Photo: CBK.
Source: Twitter

President William Ruto had ordered the CBK to institute reforms in Credit Reference Bureaus (CRBs) to avoid blacklisting.

CRB report

In the Credit Information Sharing Framework statement released on Friday, November 11, the regulator urged Kenyans to honor their debts on time.

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The CBK has also advised borrowers facing loan repayment difficulties to engage lenders for revised terms.

“This will allow them to build up a good credit history based on their payment behavior and thus obtain loans at affordable rates.

“When borrowers are having difficulty repaying their loans, they should proactively engage their lenders. They should also periodically review their credit reports to track their credit scores and verify the accuracy of the reports,” reads the statement in part. from CBK.

The regulator also reminded Kenyans that they are entitled to one free credit report per year.

He also ordered lenders not to rely solely on the CRB report when making lending decisions to provide access to credit at an appropriate price.

“The CBK has required all CRBs to include a standard statement at the top of every credit report stating that a customer’s credit rating should not be used as the sole reason for a lender to deny a customer a loan. “, said the regulator.

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This came after Kenyans raised concerns over blacklisting of amounts below KSh1,000, denial of loans and high fees to access CRB reports, among other issues.

Ruto’s promise on CRBs

Ruto advocated for financial inclusion in the country, promising Kenyans access to cheap credit.

The president said his administration’s immediate agenda was to improve the business environment and support small traders.

The president said he would work with the Credit Reference Bureau (CRB) and eliminate the blacklisting of borrowers.

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Source: TUKO.co.ke