CIS Kenya to Revolutionize Credit Data Quality as CBK Approves Game-Changing ValiData Tool

The Credit Information Sharing Association of Kenya (CIS Kenya) has announced that it recently received approval from the Central Bank of Kenya (CBK) for its innovative CIS ValiData tool. This cutting-edge data validation and submission solution is set to revolutionize how credit providers share data with licensed Credit Reference Bureaus (CRBs).

The CIS ValiData tool is a key component of CIS Kenya’s strategy to foster a transparent and efficient credit market by ensuring the accuracy and reliability of credit information. During the development and pilot phase, the tool has already demonstrated its capacity to significantly reduce errors and improve compliance. The pilot program saw active participation from a wide range of credit providers, including commercial banks who account for over 80% of Kenya’s credit market share, signalling strong industry confidence in the solution.

The CIS ValiData tool is designed to address persistent challenges in data quality and compliance by allowing credit information providers to validate their credit data for accuracy and completeness on-premise before submitting it to CRBs. This “data proofreader” ensures that only high-quality and standardized data enters the credit information sharing ecosystem with the threshold marked at 80%.

Commenting on the approval, Mr. Jared Getenga, CEO, CIS Kenya, noted, “This is a monumental step towards achieving our mission. The CIS ValiData tool directly addresses the industry’s need for higher data quality and operational efficiency. By empowering institutions to validate data at the source, we are building a more reliable credit information sharing mechanism, which will, in turn, enhance access to finance and spur economic growth in line with Kenya’s Vision 2030.”

Mr. Raimond Molenje, CEO of the Kenya Bankers Association, called it a “game-changer for the credit market,” adding, “By enhancing the quality and reliability of credit data, the ValiData tool will empower lenders to make more informed, risk-based decisions, which in turn will expand access to affordable credit for both individuals and MSMEs. This directly supports financial inclusion.”

The journey to develop the CIS ValiData tool began in 2013, evolving from an initial data hub concept to the current on-premise solution to address stakeholder concerns about data security and privacy. The tool’s development and enhancement were significantly supported by funding from the Gates Foundation through FSD Kenya.

As part of its strategic intent to improve the credit information sharing ecosystem, the CIS ValiData tool offers several core features including:

• On-Premise Data Validation: Allows CIPs to check their data against industry-agreed validation rules before it leaves their premises.
• Automated Data Submission: Secure, seamless submission of validated credit data to all licensed CRBs.
• Instant Feedback and Reporting: Provides instant data quality reports and error logs, enabling CIPs to remediate issues promptly. Generates submission reports confirming data delivery.

It empowers credit providers to take greater ownership of their data quality and compliance processes, fostering a more accountable and resilient credit market and improving self-regulation.

Representing the CRBs, Mr. Gideon Kipyakwai, CEO of Metropol CRB, said, “We applaud CIS Kenya for spearheading this landmark development that will significantly enhance the integrity of the data we receive. By standardizing data quality at the point of submission, the tool will not only streamline our processes but also increase the accuracy and predictive power of our credit scoring models. This ultimately translates to more reliable credit reports for lenders and a fairer, more transparent credit system for consumers, which is a collective win for the entire financial ecosystem.”

The development of the CIS ValiData tool is a cornerstone of CIS Kenya’s commitment to driving innovation within the financial sector. The tool represents a forward-thinking approach to solving fundamental data quality challenges, shifting from earlier concepts to a more secure and efficient model.

Speaking on the collaborative effort, Ms. Adah Mukubi, the Head of Communications and Partnerships, said, “The successful development and approval of the CIS ValiData tool would not have been possible without the immense support from our partners and stakeholders, including FSD Kenya, The Kenya Bankers Association, DFSAK, and the CRBs. Their input has been invaluable in refining the tool’s features and security. This milestone is a testament to the power of collaboration in building a smarter and more inclusive credit ecosystem.”

Looking ahead, CIS Kenya plans to continue this innovation trajectory by exploring future enhancements for the tool, such as integrating consumer dispute lodging and leveraging Open Banking and API concepts to enrich credit bureau data. This commitment to continuous technological advancement ensures the credit information sharing mechanism remains robust, adaptable, and capable of supporting an increasingly digital financial landscape.

With the CBK’s approval, CIS Kenya will now move towards a full rollout of the tool, with plans to provide targeted training and capacity-building programs for member institutions to ensure they maximize the tool’s benefits.