LISTEN TO ARTICLE
The Central Bank of Kenya will review rules on blacklisting by credit reference bureaus to make them more customer centric. The decision was made after numerous complaints by Kenyan borrowers about being on the list unfairly.
Central Bank Governor Dr. Patrick Njoroge said that the credit agencies are often quick to blacklist loan defaulters but take time to remove people from the list once the loan is cleared. Being on the defaulters list for long limits people’s ability to access loans.
The betting and licensing board released a report showing that approximately 500,000 Kenyans are blacklisted by the credit reference bureaus. Some of the borrowers appear on the list unfairly. Dr. Patrick Njoroge noted that some people are on the blacklist because the rating agencies have not updated the database.
The Central Bank governor also highlighted the need to regulate mobile lenders. “None of this online money lenders are licensed and they are all operating like Shylocks and it is really dangerous,” said Dr. Patrick Njoroge.
Majority of loan defaulters are people under 35 years. Some borrow from digital lending apps and use the money to bet.
Dr. Njoroge said that they are working on regulations for the online money lenders to prevent them from exploiting Kenyan borrowers.
Related; New Proposal to Review CRB Law on data sharing
