"How the Credit Information Sharing System Will Work for You"

On April, 8, 2020, new Regulations came into force for Credit Reference Bureaus (CRBs) and Kenya’s Credit Information Sharing (CIS) system, refreshing the framework that has been in place since 2013. The Regulations provide...a framework for the exchange of borrowers’ credit information between lenders and CRBs...

The CIS system has not worked as expected, requiring a refresh. For instance, it was seen as a punitive “blacklisting” tool that bars Kenyans from getting loans, instead of helping borrowers take advantage of their credit history to get better pricing of loans. There are 378 million records in CRBs, of which, 42 million are blacklisted. Of these, 13 million are being blacklisted for amounts less than Ksh. 1,000. 
 
Customers have also complained about slowness in updating CRB records after payment arrears have been cleared; delays in correcting errors by lenders who mistakenly “blacklisted” compliant borrowers; and the cost of clearance reports for youth entering the employment market. Unregulated digital (mobile-based) and credit-only lenders were seen as particularly outrageous in using CRB listing and other measures to harass delinquent borrowers.