How Technology is Transforming Credit Information Sharing
The financial ecosystem is the lifeblood of any thriving economy. At its heart lies Credit Information Sharing (CIS), a mechanism whose intention is to foster trust, transparency, and inclusivity between lenders and borrowers. However, in a rapidly evolving digital world, traditional approaches to credit data management are no longer sufficient. Technology has emerged as a game-changer, transforming CIS in ways we once only imagined. At CIS Kenya, we are leveraging technological advancements to redefine how credit information is collected, processed, validated, and shared. This transformation not only enhances efficiency but also builds trust and strengthens the financial ecosystem for all stakeholders. …
Empowering Young Women and Girls through Financial Inclusion
As the world marks the International Day of the Girl Child under the theme “Girls’ Vision for the Future,” we reflect on the dreams, aspirations, and voices of young women in Kenya. This theme conveys not only the urgency of addressing the challenges girls face but also the hope and power of their vision for a more equitable future. Central to this vision is the issue of financial inclusion, which holds immense potential to transform young women’s lives by providing them with access to credit, enabling them to pursue their dreams, and securing their place in the economic landscape. Despite …
Lenders develop a Code of Conduct requiring Twenty Principles for sharing credit information
Lenders in Kenya have taken the bold and responsible step of putting their house in order to minimise unethical practices that have dented the credit information sharing (CIS) mechanism over the years. Following the challenge directed at them by the Central Bank of Kenya (CBK) and the public, lenders have developed an industry Code of Conduct that is closely aligned to the expectations of the consumers, regulators and international best practices. Development of the 20 Principles of an Effective CIS mechanism has been spearheaded by the Credit Information Sharing Association of Kenya (CIS Kenya) using its wide experience in CIS …
CRB Regulations 2020 offer more than ‘soft landing’ for COVID-19 disruptions
The CRB Regulations, 2020 gazetted by the Cabinet Secretary to the National Treasury on 8th April 2020 introduced major reforms aimed at strengthening the credit information sharing framework in Kenya. Most people will remember these Regulations mainly for four prominent things: suspension of negative listing for borrowers affected by the COVID-19 pandemic; withdrawal of Central Bank approval to some lenders previously allowed to share data; reprieve granted to first-time applicants for clearance certificates and borrowers who default on principal loans of less than Shs. 1,000. This affirmative action by Government has proved to be hugely popular among many stakeholders who …
A realistic solution to the interest rate dilemma
Submitted by Everlyne on August 11, 2016 – 9:23am The decision by the National Assembly to pass the Banking (Amendment) Bill, 2015 has triggered intense debate on the anticipated consequences of controlling the pricing of loans by commercial banks in Kenya. If approved by the President in the form presented to him, the new law will cap lending rates at four percent above the Central Bank Rate (CBR) and set minimum interest rate for deposits in interest-earning accounts at 70 percent of the CBR. The raging debate has generally pitted us into two opposing sides, one holding the populist view that Kenyans …
Parliamentary Petition to Disband the CRB Mechanism is Retrogressive
A number of concerns have arisen about credit information sharing (CIS). Many of these are indeed myths about credit reference bureaus. John Lenon once said, ‘’ I believe in everything until it is disproved. So I believe in fairies, the myths, dragons. It all exists, even if it’s in your mind.’’ The first myth arises from the concept called blacklisting. We have heard it from many quarters, including the petitioner who has approached Parliament asking for disbanding of CRBs on account of the blacklisting of borrowers. This is retrogressive, and as we shall demonstrate below, blacklisting of consumers does not actually exist …