As covid 19 pandemic continue to strike, financial institutions are bearing the grunt of it.
The Central Bank of Kenya (CBK) has barred mobile money lenders from listing Kenyans on Credit Reference Bureaus (CRBs).
This according to the reserve bank is in response to the misuse of the credit information sharing (CIS) system by the credit-only lenders, a matter which has lead to numerous complaints by Kenyans.
“With immediate effect, CBK has withdrawn the approvals granted to unregulated digital (mobile-based) and credit-only lenders as third party credit information providers to CRBs.
“The withdrawal is in response to numerous public complaints over misuse of the CIS by the unregulated digital and credit-only lenders, and particularly their poor responsiveness to customer complaints,” the CBK noted in a statement.
“Thus, unregulated digital and credit only lenders will no longer submit credit information on their borrowers to CRBs.”
The barring of unregulated mobile lenders from listing borrowers makes up additional measures on CIS whose publication has been done alongside the 2020, Credit Reference Bureau (CRB) regulations
Kenyans cannot breath a sigh of relief as many young Kenyans had been listed by Tala. M cash Zenka among other lenders.
Central bank has also barred all lenders from blacklisting borrowers whose loans fall due between April 1st and September 30th.
This is to cushion Kenyans from the effects of Covid 19.
