The Central Bank of Kenya (CBK) has announced the suspension of the Credit Reference Bureau (CRB) listing for loan defaulters owing Ksh5 million and below whose loans were performing previously, but have become non-performing from October 1, 2021.
In a statement on Monday, November 8, CBK stated that this directive will be effective for the period of twelve months between October 1, 2021, to September 30, 2022.
CBK made the announcement in line with the directive by President Kenyatta on Mashujaa Day and was published as Legal Notice No. 225 of November 5, 2021, by Treasury Cabinet Secretary Ukur Yatani, on the recommendation of CBK, pursuant to regulation 18 (7) of the Banking (Credit Reference Bureau) Regulations, 2020 (Regulations).
“Consequently, loans below Ksh.5 million that fall in arrears from October 1, 2021, to September 30, 2022, will not lead to the “blacklisting” of the borrower on the Credit Reference Bureaus (CRBs)
“Further, CRBs will not include in any credit report, any negative credit information for loans of a customer less than Ksh5 million submitted to the CRB from October 1, 2020, to September 30, 2021, for a period of 12 months from October 1, 2021, to September 30, 2022,” the statement read in part.
This is one of the intervention measures that were announced by President Kenyatta, in light of the exceptional circumstances from the coronavirus (COVID-19) pandemic and in particular aiming to shield Micro, Small and Medium Enterprises (MSMEs) from the adverse impact.