President Kenyatta Bars CRB Listing Of Defaulters Temporarily

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Relief For Borrowers As Uhuru Bars CRB Listening

Speaking at the Mashujaa Day celebrations at Wang’uru Stadium in Kirinyaga, President Uhuru Kenyatta suspended CRB listing for defaults on loans of less than Ksh5 million. The directive applies for loans defaulted between October 2020 to date for a period of 12 months up to September 30, 2022.
The ban on CRB listing is a bid by the President to cushion Kenyans from the effects of the pandemic, which has led to decreased consumer demand and job losses as businesses scale back their operations.
This is the second time the government has suspended CRB listing since the start of the pandemic. In April last year, the government banned CRB listing for defaulters for a period of six months.
The six-month period lapsed in October, but lenders gave defaulters a 3-month grace period to start repaying their loans. Starting in January this year, lenders resumed CRB listing for defaulters.
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With the new directive, CRB records of Kenyans who have defaulted on loans below Ksh5 million since October 2020 will not be incorporated in their credit reports for the period ending September 2022.
The suspension of CRB listing will make it easier for Kenyans who stood the risk of being blacklisted to access more credit, allowing them to rebuild their businesses and survive through the pandemic.
The President’s decision to bar CRB listing comes even as M-Pesa announced that defaulters on the Fuliza overdraft service will have their access to their KCB M-Pesa and M-Shwari accounts blocked, and the funds in these accounts used to settle Fuliza debts.
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