CHECK IF YOU ARE LISTED ON CRB

Five million more Kenyans have been blacklisted on the Credit Reference Bureau (CRB) in a period of five months since August 2020.

Data by Metropol CRB revealed that 14,035,718 Kenyans had been negatively listed by January 2021, a major increase from 9,673,258 in August 2020.

The numbers rose after the expiry of a six-month grace period that saw CRB suspend listing of loan defaulters on September 30.

The CRB listing relief was part of a stimulus package to cushion distressed businesses and individuals from the effects of the coronavirus pandemic.

Defaulters with loans that were performing before April 1, 2020, but went into arrears were asked to regularise loans by the end of December 2020.

Banks were asked to notify defaulters before listing them with CRB for loans owing arrears after December 2020.

Metropol managing director Sam Omukoko noted that most people were struggling with repayment, including those who had restructured their loans.

“This is a temporary situation and I believe as the economy picks up and cash flow improves people will begin to pay,” he explained.

Earlier in 2020, the Central Nank of Kenya (CBK) banned hundreds of mobile loan app companies from listing defaulters with CRB.

More than 337 unregulated digital mobile lenders and micro financiers were banned as part of the CBK’s efforts to reform the emerging digital lending market.

The economy has taken a hit from the Corona pandemic with the Kenya National Bureau of Statistics (KNBS) showing that 1.72 million workers had lost their jobs in three months to June 2020.

The Central Bank earlier revealed that borrowers had defaulted on Ksh73.05 Billion bank loans in 10 months to December.

Defaulting also affected interests for loans as banks sought CBK’s permission to reprice the cost of loans based on borrowers’ risk and increase risk premium.

The move will see an increase in interest rate spread – what remains after banks deduct what they pay for deposits from what they earn from loans.

By Kenyans.co.ke

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