These are mainly small-scale traders who have defaulted on small loans borrowed through their mobile telephones and stand locked out from credit. In 2009, when the framework was drafted, explosion of the mobile loans had not happened. We did not know that small loans repayable on a weekly basis and lent to small business owners and the informal sector would be a big factor. Does it surprise anyone that CRB regulations stipulate that the name of a defaulter remains on the listing register of the CRB for seven years? They were created to facilitate the sharing of credit information between licensed financial institutions.

Source: Daily Nation April 07, 2020 20:26 UTC