Relief for job seekers and those blacklisted for defaulting ‘petty loans’: New CBK Guidelines

It is a big reprieve for Kenyans blacklisted by the Credit Reference Bureau, CRB, for defaulting on payment of ‘petty’ loans. This is after the Central Bank of Kenya, CBK, released new CRB guidelines. Under the new blacklisting regime, one will only be blacklisted for any defaulted amounts of over Sh1,000.

“A minimum threshold of Ksh.1,000 has now been set for negative credit information that is submitted to CRB by lenders,” says the CBK.

In the new guidelines, ‘borrower’s information regarding nonperforming loans of less than Ksh. 1,000 will therefore not be submitted to CRB, and borrowers that were previously blacklisted only for amounts less than Ksh.1000 will be delisted’.

This will be good news for thousands of Kenyans who have been blocked from getting loans for failing to pay loans of as little as Sh.50.
Mobile lenders top the list of organizations responsible for blacklisting ‘petty loans’ defaulters.

Also benefiting from the new regulations are thousands of jobless youths. Getting the first CRB clearance certificate will now be free. “First time CRB clearance certificate will be provided at no charge,” orders the CBK.

SACCOs will also have something to smile about as they will be able to get prospective borrower’s credit information before advancing financing. “SACCO societies regulated by the Sacco Societies Regulatory Authority (SASRA) have now been included as authorized subscribers of credit data to CRBS. These SACCOS will now submit borrowers’ information to CRBS and also receive credit reports directly from them,” the CBK adds.

Loans that fall in arrears from April 1 to September 30, 2020, will now not lead to the “blacklisting” of the borrower on the CRB. This is one of the emergency measures that were announced on March 25, 2020, in light of the exceptional circumstances from the Coronavirus pandemic and aiming to shield borrowers from the adverse impact.