In Summary
  • About half a million Kenyans have been blacklisted by CRB over small loans.
  • Belgut MP Nelson Koech says it is unfair for lenders to treat defaulters of billions of shillings the same way as those who have borrowed Sh100 from mobile loan providers.
  • Mr Koech argues that listing by lending institutions through the CRB is stifling growth among youth.

A legislator has initiated the process of scrapping the law that has seen hundreds of thousands of borrowers listed for defaulting on small loans with the Credit Reference Bureau (CRB).

Belgut Member of Parliament Nelson Koech says it is unfair for lenders to treat defaulters of billions of shillings the same way as those who have borrowed Sh100 from mobile loan providers such as CBA’s Mshwari and Tala.

“Why would a defaulter of Sh1 billion loan be treated the same way as that of a loan on Mshwari? We also do not see why employers should be using the CRB as part of the employment process and this must be scrapped,” Mr Koech said in an interview with the Nation.

“I propose to have the enabling provisions for the CRB listing repealed. We will then come up with a new bill that will have amendments to see us operate like the United Kingdom where you are not listed but your credit worthiness is rated and given points,” Mr Koech said adding that he has written to the Speaker of the National Assembly to begin the process.

In his letter, Mr Koech argues that listing by lending institutions through the CRB is stifling growth among youth.

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