Kenya eases pain of loan defaulters, alters credit bureau rules
Central Bank of Kenya's proposal that banks give notice of intentions to list a defaulter will help the banking fraternity side-step legal challenges. Graphic/Joy Abisagi
Kenya is pushing for a reprieve for loan defaulters by reducing by two years, the period credit reference bureaus (CRBs) can hold information about them. This potentially seals loopholes which were exposing banks to expensive court battles.
Fresh regulations published last week are seeking to cut this period from seven to five years while also requiring banks to give bad borrowers a one month notice before listing them.
