President Ruto: 4 million loan defaulters to be removed from CRB

President Ruto: 4 million loan defaulters to be removed from CRB

By Peter Ochieng

Kenyans blacklisted by the Credit Reference Bureau (CRB) for defaulting on loans have every reason to smile, following President William Ruto’s intervention.

The Head of State on Wednesday, September 28, 2022 directed CRB to abolish blacklisting of borrowers who default on loan payment.

He said instead, CRBs should enlist a scoring method where defaulters get a low grade, but not having the borrowing door shut on them.

The President stated that CRBs should not be modelled on ‘all or nothing.’

“The government of Kenya is not against credit listing or CRB facilities, in fact, we support CRBs as a mechanism of instilling financial discipline in our financial sector. We do not want credit listing to be all-or-nothing,” said the President.

Ruto who spoke during a joint press conference hosted by mobile phone company Safaricom, KCB, and NCBA on financial inclusion said 4 million Kenyans blacklisted by CRB will be removed from the list in November.

“I am very happy that between four and five million Kenyans will by the beginning of November be out of blacklisting,” he said.

“That is very important, they have been excluded from any formal borrowing because of black listing and have been left at the mercy of shylocks and predatory lenders that exploit them and many Kenyan pay as much as 1000 percent ” he added.

CRB data shows that borrowers who had defaulted on digital loans of less than Sh1,000, make up the bulk of over 4 million borrowers blacklisted.

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