The Central Bank of Kenya(CBK) has increased the number of Third-party Credit Information Providers(CIPs).
This is to enhance the databases of Credit Reference Bureaus(CRBs), enabling them to have a more complete and more comprehensive credit history of a borrower.
CBK list of approved CIPs
Figures from CBK shows that as of February 28, 2021, the monetary authority had approved 1,994 third party Credit Information Providers, allowing them to provide credit information to CRBs
These are in addition to commercial banks, microfinance banks and Deposit-taking Savings and Credit Co-operative Societies, which are mandatory subscribers.
The Directory of approved Third-party CIPs now includes 1327 Non-Deposit Taking Savings and Credit Co-operative Societies(SACCOS), 600 Trading Companies, 50 insurance services providers, 6 Development Finance Companies, 6 Self-Help Groups, 3 Parastatals, 1 Institution of Higher Learning and one community-based organization.
More Non-Deposit-taking SACCOS are expected to seek approval as third party CIPs when new regulations that will put these societies under the supervision of SACCO Societies Regulatory Authority(SASRA)take effect beginning June 2021.
The Credit Reference Bureau Regulations, 2020, allows Credit Reference Bureaus (CRBs) to partner with approved third-party Credit Information Providers (CIPs), allowing CRBs to source credit information from the third parties.
Using this network, CRBs can do due diligence and provide information to lenders, enabling the locking out of loan defaulters from the credit market.
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