Good News To Loan Defaulters As CBK Makes Major Announcement On CRB Listing.
The Central Bank of Kenya (CBK) has announced the good news to all loan defaulters on the CRB listing.
According to the announcement from the Central Bank of Kenya, CRB listing of individuals and businesses owing Sh5 million and below will be suspended for a year.
Last week National Treasury Cabinet Secretary Ukur Yatani published a legal notice concerning CRB listing. The circular barred negative credit listing information on borrowers until September 30 next year.
The President of the Republic of Kenya Uhuru Kenyatta had earlier announced the suspension during his Mashujaa Day speech on 20th October 2021.
The President said the move will help the businesses which have declined and are struggling to pay their debt on loans borrowed from the various lending institution due to the effects of the Covid-19 pandemic.
CBK has now informed all those who have borrowed loans worth 5millions and below and had fallen into arrears between October 1 last year and September 30 this year will not be negatively listed on the CRBs.
CBK further said that borrowers will not be blacklisted on the CRB if their loans are below Sh5 million and all in arrears from October 1, 2021, to September 30, 2022.
According to CBK, the suspension is going to affect adversely the provision of credit by banks to the target group. This is because the banks will be able to know and distinguish between the good and bad borrowers during the suspension period.
