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A new proposal has been introduced in Parliament seeking to repeal the Credit Reference Bureau regulation on grounds that the practice of sharing borrowers’ information has denied growth to enterprising youth.
In a letter to Speaker of National Assembly, Belgut Member of Parliament Nelson Koech wants the lending institutions to resort to conventional means of recovering their debts without sharing the information of borrowers to non-parties.
“The practice of sharing borrows information with listing claims of as low as Sh100 has denied growth to enterprising youth, In that regard I seek the repeal of the Credit Bureau Regulations, 2013 which were drafted in exercise of the powers conferred by section 31(3) and (4) and 55(1) of the Banking Act and section 34(4) and 5 and 48(20 of the Microfinance Act 2006,” the proposal stated.
The sharing of credit information was effected following the publication of CRB Regulations 2013. It aimed to assess and give a score to borrowers on account of their credit history.