Credit reporting system to help weed out rogue borrowers

Central Bank of Kenya (CBK) Governor Patrick Njoroge during a press conference at the CBK on January 20, 2015. CBK's data for 2015 quarter three shows that the value of non-performing loans jumped 0.7 per cent from Sh123.9 billion in June 2015 to Sh124.8 billion in September 2015. PHOTO | DIANA NGILA | NATION MEDIA GROUP

What you need to know:

  • It is expected that the data hub proposal will reduce errors or omissions in credit reporting, giving a consumer uniform electronic data portfolio.
  • CBK recently raised the red flag over what it feels is careless lending by financial institution, noting that it will assess credit risks in the market before it becomes a problem.

Bad loans have continued to rise, even as the financial sector stakeholders seek to consolidate credit information sharing to move away from the current model where firms submit it to multiple licensed reference bureaus.

Welcome!

You're all set to enjoy unlimited Prime content.