CBK:Do not list customers with CRB in case the debt defaulted is less than Ksh1,000

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Central Bank Of Kenya Governor Patrick Ngugi Njoroge

The Central Bank of Kenya (CBK) has gazetted new rules for Digital Credit Providers (DCPs) popularly known as Digital Lenders.

The move which is seen as a way to get rid o

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The new guidelines in the Digital Credit Providers Regulations 2022 are aimed at lowering interest rates and unethical means used by lenders to collect debts.

“The regulations provide for inter alia the licensing, governance, and lending practices of DCPs. They also provide for consumer protection, credit information sharing, and outline the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) obligations of DCPs,” CBK Governor Dr. Patrick Njoroge said.

The New regulations forbid the DCPs from sharing one’s personal information and contacts with third parties.

The Lenders will not be allowed to access the Customers Phone Book, The Lenders have been using such information to call and coerce their clients to pay loans.

DCPs will also not be allowed to list customers with the Credit Reference Bureaus (CRBs) in case the debt defaulted is less than Ksh1,000.

CBK has prohibited digital lenders from using threats, violence, or other means to harm the debtors, their reputation, or property if they do not settle their loans.

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