No More CRB Listing for Loans Under Sh5 Million

The central bank of Kenya has announced the suspension of the Credit referencing Bureau (CRB)  listing of loan defaulters owing Sh5m and below for the period between Oct 1, 2021, to Sept 30, 2022.

The announcement was made after a directive by President Uhuru Kenyatta on Mashujaa Day. This is part of measures put in place to cushion distressed borrowers from the harsh economic environment.

“This is one of the intervention measures that were announced on October 20, 2021, in light of the exceptional circumstances from the coronavirus pandemic and in particular aiming to shield Micro, Small and Medium Enterprises (MSMEs) from the adverse impact,” CBK said in a statement.

“The suspension is therefore targeted to rope in the MSMEs and for a specified duration that will provide space to turn around their businesses,” the regulator added.

Speaking during the Mashujaa Day celebrations, President Kenyatta noted that the move will provide relief particularly to MSMEs who are struggling to get back on track following the adverse effects of the Covid-19 pandemic.

“The relevant authorities will, for loans less than KSh.5 million, effect a moratorium of listing in CRBs for a period of 12 months to end September 2022, Further, borrowers with loans below KSh. 5 million listed with CRBs from October 2020 to date will not have that listing incorporated in their credit reports for the next 12 months, ending September 2022,” said president Kenyatta.