Laws and Regulations
The Sacco Societies (Amendment) Bill, 2018
The Sacco Societies (Amendment) Bill, 2018 was gazetted on 19th January 2018 for placement before the National Assembly. The objective of this Bill is to amend the Sacco Societies Act, 2008, to provide for the registration and licensing of Sacco societies as deposit-taking savings and credit co-operatives. The Bill further expands the current credit information sharing mechanism to include Sacco societies with other licensed financial institutions. This is intended to align the Act with the Banking Act, the Microfinance Act, 2008, thus bringing credit information sharing under a single regulatory framework. Under the proposed amendment, Sacco societies will be mandated to …
June 2020 Digest – Ushering a New Regulatory Regime
The Regulations have made Risk-Based Pricing mandatory for banks and other lenders to use a customer’s credit score when appraising a credit application and in determining the interest rate to charge. CIS Kenya and CARE Risk Solutions, India organised an interactive knowledge session on Internal Credit Rating and Risk Based Pricing on 19th May 2020. Across the world, people are being asked to stay at home and practice social distancing, to stop the spread of the COVID-19 virus. We will also feature an article on how on financial institutions can mitigate on NPLs. Download …
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 …
5th Africa CIS Conference Report
The 5th Africa CIS Conference provided a unique meeting point for Africa’s financial sector players to share emerging developments on Credit Information Sharing and related aspects. The 5th Africa CIS Conference was different, with a wider conversation into the synergies that the broader credit infrastructure provides in promoting a more inclusive credit market. Under the theme: “CREDIT INFRASTRUCTURE FOR SUSTAINABLE GROWTH: Entrenching Dynamic Assessment of Risk”, emphasis were placed on inter-relationships between 4 key elements and 4 enablers of an effective Credit Infrastructure. Download Report …
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 …
Draft CIS National Policy
Kenya has never had a formal CIS policy. This paper is the first attempt to do so. Thus, while this Policy Paper is mostly a response to current developments, the failure of a formal policy, from the outset, has had repercussions. For example, despite global best-practise encouraging the sharing of positive and negative data, Kenya started out sharing negative credit data only. Read more.. …
A New Era in CIS Digest
In this digest, we feature articles on the CIS Learning Centre, Daily Submission and a summary of Data Specification Template version 4, RegTech-a conversation we will hold at the 5th Regional CIS Conference 2020 and an opinion piece on Google’s advertising policy on short term loans. Read the digest here …
Data Protection Act, 2019
The Data Protection Act was enacted in 2019. Members of CIS Kenya have been provided with summary of requirements as well as the roles each of their department is expected to take to ensure compliance. Members are encouraged to read and understand the full Act to ensure they are protected from legal risks that may arise on non-compliance. link …
Interest Rate Ruling-Petition_413_of_2016-Interest Cap
This is the ruling determining the constitutionality of the interest rate cap that was effected in 2016. Download the Petition_413_of_2016-Interest Cap …
