Financial Sector Deepening Kenya (FSD Kenya) requested a peer review of the ADR mechanism for CIS Kenya. More specifically, to review the ADR mechanism’s (Tatua Center) operation to review its current model of resolving disputes and benchmark it against international standards. These standards are captured in the principles developed by the International Network for Financial Ombudsman (INFO) which is based on the Worldbank’s report on Fundamentals for Financial Ombudsman. to provide recommendations for improved efficiency and effectiveness to provide recommendations on the possible expansion of the scope of disputes resolved by Tatua Center  ADR-Peer-Review …

This report is an outcome of a study conducted by Sigma Business and Analytics Ltd to assess the capacity of SACCO’s in Kenya to participate in credit information sharing (CIS) as commissioned by Financial Sector Deepening (FSD) Kenya. The survey is significant in that its findings will constitute a reality check as to whether the SACCO industry can live up to standards set for CIS participation as well as provide direction on next steps for SACCO entry into CIS.  SACCO CIS CAPACITY REVIEW REPORT …

In 2010, a communication plan developed through a joint project of the Central Bank of Kenya and the Kenya Bankers Association (then referred to as the Kenya Credit Information Sharing Initiative (KCISI)) was implemented with a special focus on bank staff and customers. The communcation plan objectives were to elicit greater ulitization of credit reports by lenders and borrowers, and enhance confidence in the system and the adoption of prudent borrowing practices. Following feedback from forums held in the first phase of the project, it emerged that there existed a number of myths and concerns about the CIS among lenders and …

The second phase of the project started in 2011 and focused on expanding the reach of credit information sharing to the broader spectrum of credit providers, creating financial inclusion with special  focus  on  getting  on-board  SMEs.  The  major  accomplishment  of  the  Phase  II (which ended in December 2014) was enabling all regulated by CBK financial institutions as well as non –regulated entities to share full-file records, meaning adding to negative data sharing the positive credit information.  End of Phase 2, CRB Project Report …

Credit information sharing in Kenya’s banking sector was launched on 31st July 2010. Consumer awareness is critical to ensure that the potential benefits of the mechanism are fully appreciated. With funding from FSD, the Kenya Credit Information Sharing Initiative commissioned TNS RMS East Africa Ltd. to carry out a baseline and needs assessment of the current understanding of CIS amongst all its stakeholders. This study was expected to provide valuable insights into stakeholder attitudes, perceptions and opinions about the credit information sharing mechanism. It also showed how much is understood about its operations, products and benefits. In addition, the findings …

Lending is an important element of financial intermediation, which is itself at the heart of an economy’s financial architecture. It therefore behoves policy makers to continually review the credit market to minimize inefficiencies that hinder faster economic growth. Non Performing Loans, though declining, remain a concern to the quality of lenders assets in Kenya’s financial sector. In addition, good borrowers have been disadvantaged by high interest rates and stringent collateral requirements, as banks cushion themselves against the risk of high Non Performing Assets.   These challenges have been an outcome of information asymmetry, which in the past continually led to …

Credit information sharing (CIS) is a risk management tool designed to assist in making lending decisions. It is a mechanism through which banks and other financial institutions may justifiably divulge information about their customers without breaching the banker’s duty of confidentiality, which is one of the key tenets of the banker customer relationship.    The Banking (Credit Reference Bureau) Regulations 2008 were adopted To provide a framework for the governance of licensing, operation and supervision of Credit Reference Bureaus (CRBs) by the Central Bank of Kenya. The CIS initiative in Kenya is, however, threatened by the risk of litigation arising …

Credit information sharing is a risk management tool critical in the process of making lending decisions, and a legal way through which the banker- customer confidentiality can be broken. The enactment of the Banking (Credit Reference Bureau) Regulations 2008 was a legislative intervention aimed at providing a framework for the governance of licensing, operation and supervision of Credit Reference Bureaus by the Central Bank of Kenya. Credit Reference Bureaus exist to improve the information available on borrowers in an effort to ease financing constraints. The information they make available from a borrower’s credit information such as previous and current loans, …