Monday, October 12, 2020

Hundreds of Digital Lenders Denied CRB Blacklisting Powers

    October 12, 2020   No comments

Tala, Branch
Tala and Branch International Loan Apps

Unregulated digital lenders have been hit hard by Central Bank of Kenya (CBK) after being denied powers to blacklist loan defaulters. 

This is not a new move by the CBK. The announcement was made in early this year when some loan apps posed predatory ways of lending. 

Others affected by the directive included the Credit-Only companies as a way to cushion Kenyans from the negative effects caused by the COVID-19 pandemic. 

The licensed CRBs - Metropol CRB, Transunion CRB and Creditinfo CRB - have finally revealed that the directive have now been fully implemented with over 337 digital lenders and Credit-Only companies having been barred from using CRB services. 

According to data from the CBk , out of the 3.2 million defaulters, over 1 million have been removed from the CRB blacklist. This includes only those blacklisted by loan apps since inception four six years ago.

Popular loan apps including Tala, Branch International, Okash, Opesa ,Zenka and Nigeria's Carbon will no longer be able to list defaulters negatively or even positively. 


Mwabaya Katana

About Mwabaya Katana

Mwabaya is an experienced and talented finance content creator based in Kenya. He is the Founder of Loans Kenya Blog.

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