CBK spares defaulters from unregulated digital lendersCBK Governor Patrick NjorogeCentral Bank of Kenya has banned unregulated digital and credit only lenders from submitting names of loan defaulters for blacklisting at the Credit Reference Bureaus (CRB).In a statement, CBK explained that the withdrawal is in response to numerous public complaints about misuse of the Credit Information Sharing System (CIS) by the above-mentioned lenders and particularly poor response to customer response. “With immediate effect, CBK has withdrawn the approvals granted to unregulated digital (mobile-based) and credit-only lenders as third party credit information providers to CRBs.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 complaints around unregulated lenders last month caught the attention of Kenya’s parliament. On the recommendation of CBK, the Cabinet Secretary for the National Treasury and Planning has also published by Gazette Notice No. These SACCOs will now submit borrowers’ information to CRBs and also receive credit reports directly from them.

Source: Standard Digital April 14, 2020 14:59 UTC