The key reforms introduced by the CRB Regulations on 14^th April 2020 include:

1. A minimum threshold of Ksh.1,000 has now been set for negative credit information submitted to CRBs by lenders. Borrower’s information regarding non-performing loans of less than Ksh.1,000 will therefore not be submitted to CRBs, and borrowers that were previously “blacklisted” only for amounts less than Ksh.1,000 will be “delisted.”
2. CRBs will provide first-time CRB clearance certificates at no charge.
3. SACCO societies regulated by the Sacco Societies Regulatory Authority (SASRA) have now been included as authorized subscribers of credit data to CRBs. These SACCOs will now submit borrowers’ information to CRBs and also receive credit reports directly from them.

The following additional measures have been implemented:

1. CBK has withdrawn the approvals granted to unregulated digital (mobile-based) and credit-only lenders as third party credit information providers to CRBs. The withdrawal is in response to numerous public complaints about misuse of the CIS by the unregulated digital and credit-only lenders, particularly their poor responsiveness to customer complaints. Thus, unregulated digital and credit only lenders will no longer submit credit information on their borrowers to CRBs.
2. For a period of six months, there has been a suspension of 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.

 Note:

The surge of mobile-based lending facilities has been suppressed and limited as the unregulated service providers can no longer submit borrower’s information to CRB. This will greatly reduce uncontrolled impulse borrowing by the Kenyan youth that put them in perpetual debt.

Free first-time CRB clearance is a relief to graduates and youth seeking jobs.