Over 4 million Fuliza defaulters will be removed from the Credit Reference Bureau (CRB) and other blacklists from November this year, the government and lenders have announced.
The announcement made by President William Ruto during his meeting yesterday, where he met officials from Treasury, Central Bank, Safaricom, Kenya Commercial Bank (KCB) and NCBA.
Ruto said the lenders have now agreed to develop a new credit score system as opposed to blacklisting customers. The President explained that the Government will underwrite the risks that will come with the new move.
“We must think beyond financial inclusion to a more accessible and affordable credit model. I am very happy that between 4 to 5 million Kenyans will, by the beginning of November, be out of the CRB blacklist. This is very important because these Kenyans have been excluded from any formal borrowing and have been left at the mercies of shylocks that exploit them.” President Ruto stated.
Fuliza’s New Tariffs.
President Ruto lauded the move saying it will give the listed Kenyans a fresh opportunity to access credit and put an end to exploitation from what he described as “predatory lenders”
The new Fuliza rates will see customers borrowing Sh500-1000 pay a daily interest charge of Sh6 down from Sh10. Further, those borrowing loans of between Sh101-499 will attract a Sh3 daily charge down from Sh5.
Consequently, users borrowing Sh1001-1500 will pay a charge of Sh18, a 10 per cent discount from Sh20, while those who will borrow Sh1500-2500 will, in effect, pay Sh20, down from Sh25, reflecting a 20 per cent discount.
Those who seek to draw Sh2500-70,000 will also enjoy a 16.7 per cent discount, to pay a daily charge of Sh25 down from Sh30.
President Ruto said that the move will play a critical role in the financial inclusion of low-income earners.
Read also; Safaricom Lowers Fuliza Charges by 40%.