On 8th April, 2020, the Central Bank of Kenya (CBK) published the Banking (Credit Reference Bureau) Regulations, 2020 (“the CRB Regulations”) which seek to amend the Banking (Credit Reference Bureau) Regulations, 2013.
Among others, the CRB Regulations provide lax rules with regard to the access of credit facilities by borrowers. The CRB Regulations make it an offence for a lending institution to deny a customer a credit facility or any other financial service solely on the basis of a credit score collected through CRB listings.
This means that banks and other credit institutions are now prohibited from denying blacklisted borrowers loans on the basis of their credit scores only. Any lending institution that contravenes this rule may among others, be liable to a fine of Kenya Shillings two million (approx.U$ 20,000).
This Amendment is a welcomed relief for borrowers seeking to obtain credit facilities during the Covid-19 pandemic.
The CRB Regulations can be found here.
Please contact us at Info@cfllegal.com should you require further information.
