You will be listed with the Credit Reference Bureaus (CRB) if you default on your loan, this is according to Central Bank of Kenya (CBK) Governor Patrick Njoroge.
According to Njoroge, commercial banks and other lending institutions will from today (Thursday, October 1) start listing loan defaulters with CRB after the expiry of the moratorium that was issued on April 14, 2020.
Consequently, financial institutions have started to assess the performance of all loans that were performing before April 1. For loans that went into arrears after April 1, the period for determining their performance begins on October 1.
“If a loan is in arrears after 60 days from October 1, a financial institution will, in accordance with the existing procedures, give borrowers notice of the intention to list them with the CRBs. If the loan has not been regularised after the 30-day notice period, the financial institution will then list the non-performing loan with the CRBs,” says CBK, in a statement.
For those who had loans that were performing before April 1 and went into arrears, you will have three months (up to the end of December) to regularise your loan before being listed with CRBs.