Metropol Credit Reference Bureau (CRB) has compiled data for 21 million Kenyans and 800 businesses to help lenders make right decision while processing loans.
The information which can be accessed at a click of a button is set to revolutionise credit checks in the country to ensure that borrowers with good credit standing have access to a wide range of facilities.
Metropol CRB Chief Executive Officer (CEO) Gideon Kipyakwai said the development which is a shift from the blacklisting which became synonymous with CRB services in the country was beneficial to both lenders and borrowers and will take the country’s credit market to the next level.
“We are enabling lenders among them banks and Micro Finance Institutions to do credit checks and in the process enhance access to credit. Therefore, CRB is good and is not in any way stopping people from accessing loans,” he said.
With the new regulations on CRB in place, Kipyakwai said all borrowers who were listed for tickets below Sh1000 have been struck off the blacklist adding that the new measures which lay emphasis on credit scores would enable many Kenyans to access loans while exposing those who have a penchant for defaulting.
“What this means therefore is that you can borrow small amounts and repay on time to build your credit score which will in turn enable you to qualify for high amounts. Some banks are now using this information to give mobile loans of up to Sh1 million to qualifying individuals,” he said.
Speaking during an outreach program for financial institutions in the Nyanza region, Kipyakwai urged Kenyans to strive to maintain a good credit standing in order to benefit from the country’s multi-trillion credit market.
“When you borrow from one institution and run away you have no idea the harm you are causing to yourself. Information on all loans in the country is shared and this will automatically bar you from accessing loans from other lenders,” he said.
The character and willingness to pay by borrowers, he said, was critical in building a strong credit market to spur economic development in the country.
The meeting which was attended by Cooperative Societies, county governments and Micro Finance Institutions, he said was part of Metropol CRB’s community credit outreach program which targets to equip members of the public with the requisite information to ensure they are not locked out of the credit market.
“The borrower is just the same person who moves from one lender to another in the community. That is why we are carrying out these workshops in ten regions across the country to ensure that our people get this information,” he said.
The Nyanza region, he said, had a huge business community and vibrant consumer market adding that the data with Metropol CRB will come in handy to grow the market further.
By Chris Mahandara
