By Samuel Ouma
The Central Bank of Kenya (CBK) has directed financial institutions to begin implementing an order blocking new CRB listings for loan defaulters with amounts less than Ksh.5 million ($50000).
The directive was issued in response to President Uhuru Kenyatta’s announcement during the Mashujaa Day celebrations. According to the head of state, the move is one of the steps he is taking to help the Kenyan economy recover from the consequences of the Covid-19 pandemic.
President Kenyatta announced that the listing will take one year.
“The agency announces the suspension of negative listing credit information for borrowers with loans under Ksh5 million whose loans were previously performing but have become non-performing as of October 1, 2020 for a period of twelve months.”
“Furthermore, from October 1, 2020 to September 30, 2022, CRBs will not include in any credit report any negative credit information for loans of a customer less than Ksh5 million reported to the CRB,” read part of a statement released by the bank on Monday.
The suspension targets business enterprises in the East African country.
Statistics show that more than 14 million Kenyans have been blacklisted on Credit Reference Bureaus (CRBs), limiting their access to credit when they are in need.