CBK suspends CRB listing of loans under Sh5mn

NAIROBI, Kenya, Nov 8 – The central bank of Kenya has announced the suspension of the Credit referencing Bureau (CRB)  listing of loan defaulters owing Sh5m and below for the period between Oct 1, 2021, to Sept 30, 2022.

The announcement was made following a directive by President Uhuru Kenyatta on Mashujaa Day as part of interventions put in place to cushion distressed borrowers from the harsh economic environment occasioned by the coronavirus pandemic

The regulator further noted that CRBs will not include in any credit report, any negative credit information for loans of a customer less than Sh 5 million submitted to the CRB from October 1, 2020, to September 30, 2021, for a period of 12 months from October 1, 2021, to September 30, 2022

“This is one of the intervention measures that were announced on October 20, 2021, in light of the exceptional circumstances from the coronavirus (COVID-19) pandemic and in particular aiming to shield Micro, Small and Medium Enterprises (MSMEs) from the adverse impact,” CBK said in a statement.

“The suspension is therefore targeted to rope in the MSMEs and for a specified duration that will provide space to turn around their businesses,” the regulator added.

Speaking during the Mashujaa Day celebrations, Kenyatta noted that the move will provide relief particularly to MSMEs who continue struggling to get back to a sound footing following the adverse effects of the pandemic.

“The relevant authorities will, for loans less than KSh.5 million, effect a moratorium of listing in CRBs for a period of 12 months to end September 2022, Further, borrowers with loans below KSh. 5 million listed with CRBs from October 2020 to date will not have that listing incorporated in their credit reports for the next 12 months, ending September 2022,” he said.