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Monday September 28, 2020 – Loan defaulters have exactly 2 days to clear up their loans or else they will end up being blacklisted by the Credit Reference Bureau (CRB).

The six-month grace period of suspension of Credit Reference Bureau (CRB) listing for loan defaulters is set to expire on Wednesday.

The Central Bank of Kenya (CBK) is yet to issue a communication on the matter, meaning that failure to extend the suspension will result in blacklisting of loan defaulters.

In a press release dated April 8, 2020, CBK announced the CRB listing freeze as part of Covid-19 relief measures to cushion Kenyans.

“On the recommendation of CBK, (Treasury CS Ukur Yattani), published the suspension for a period of six months, the listing of negative credit information for borrowers whose loans were performing previously but have become non-performing from April 1, 2020.”

“Consequently, loans that fall in arrears from April 1 to September 30, 2020, will not lead to the “blacklisting” of the borrower on the CRBs,” reads the statement in part.

Banks, Saccos and microfinance firms will now be free to provide negative credit information to the CRB after the deadline on Wednesday.

The failure to extend the CRB listing suspension will see loan defaulters being blacklisted and this will further affect their changes of borrowing more.

Credit Information Sharing Association of Kenya CEO, Jared Getanga, says communication from CBK is yet to be issued.

“We are waiting for the CBK to provide guidance, the matter is in their hands.”

“It cannot just happen automatically because some aspects of resumption need guidance,” Gatanga stated.

Over 3.2 million Kenyans are blacklisted for defaulting on loans with data indicating that the number jumped from 2.7 million in 2019.

The rise has been attributed to the Covid-19 pandemic (prior to the suspension of listing) that saw many Kenyans lose their jobs and businesses suffer enormous losses.


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