CRB responds to Ruto’s directive on loan defaulters.
On tuesday, September 13th, President William Ruto gave directive to review the blacklisting system of loan defaulters.
Currently, Credit Reference Bereau( CRB) has only three licensed operators namely; licenced Operators, Creditinfo Group, TransUnion and Metropol.
CRB responds to Ruto’s initative saying that it will be of benefit to loan borrowers. However, they stated that part of the review is to allow access and share more data
Managing director of creditInfo said,”Credit bureaus for a good number of years have been providing credit scores in the buckets, unfortunately for a very long time the bureau date has been used as an exclusion. Part of the review should be how to access and share more data.”
Statistics by Metropol, show that CRB listing stood at 14,035,718 by January 2020. President Ruto and his Deputy Rigathi Gachagua during their inaugural speech stated that the blacklisting is negatively affecting millions of Kenyans.
President Ruto said,”We shall take measures to drive down the cost of credit.Our starting point is to shift the Credit Reference Bureau (CRB) framework from its current practice of arbitrary, punitive and all or nothing blacklisting of borrowers.”
Licenced CRB operators have stated that most defaulters borrowed from digital money lenders and are unwillinging to pay back.
Also read 13 directives that President Ruto gave after his inauguration