Kenya banks to begin data sharing
Kenya's banks and mortgage firms are to begin sharing data on their clients from the end of this month.From July 31st, financial institutions in the country will have to provide information on all their non-performing loans to a Credit Reference Bureau (CRB), Business Daily reported. The move will bring down the cost of obtaining finance for those who have good credit histories, however individuals whose records are below standard may find acquiring loans or mortgages more difficult.
Chairman of the Kenya Bankers Association Richard Etemesi was quoted by the news source as saying the move will "help in locking out serial loan defaulters who take advantage of the information asymmetry that exists in the country". The credit referencing system has taken over a decade to develop, he added.
Kenya's CRB was first licensed in February and, speaking at the time of the move, Professor Njuguna Ndung'u of the Central Bank of Kenya said it will help strengthen relationships between banks and borrowers.