KENYAN CREDIT REFERENCE BUREAUS – PROGRESS REPORT
I have been reviewing the Kenya Credit Bureau Information Sharing Initiative Progress Report 2008-2011 with interest here. The report has been prepared by Financial Sector Deepening Kenya and the following are the key highlights;
- That 4 banks make 90% of all enquiries.
- That 9 banks make 97% of all enquiries.
- That data submitted by banks composed of 203,000 individual consumers and 9,900 businesses.
- Customer complaints very low, highest number was 9 in November 2010.
- Banks using the credit bureau system as a ‘debt collection mechanism’ rather than a ‘risk management mechanism’.
- Old and outdated data being loaded into the credit bureaus with the sole purpose of piling pressure on debtors to pay up.
- There is a substantial difference between number of non performing loans reported to Central Bank and those reported to credit bureaus.
- Highlights the fact the law only allows sharing of negative information only and by banks only.
The report recommends that as a priority Microfinance institutions and Saccos should be included in the initiative and that positive information should also be shared.
The Business Daily has also today reported on the same with a very informative interview with a credit bureau insider here and that Kenyan banks have blacklisted 213,000 customers here and that there are proposals by the Kenya Bankers Association to have an arbiter on the disputes arising from the credit reporting process here