The Central Bank of Kenya (CBK) announces the suspension for a period of twelve months, of the listing of negative credit information for borrowers.
The new directive seen by Uzalendo News, will affect citizens with loans below Ksh. 5 million and became non-performing from October 1, 2021.
This follows the publication of Legal Notice No. 225 of November 5, 2021, by the Cabinet Secretary for the National Treasury and Planning (Cabinet Secretary), on the recommendation of CBK.
Loans below Ksh.5 million that fall in arrears from October 1, 2021 to September 30, 2022, will not lead to the “blacklisting” of the borrower on the Credit Reference Bureaus (CRBs).
Further, CRBs will not include in any credit report, any negative credit information for loans of a customer less than Ksh.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 adverse impact.
