Kenyan consumers 'to miss out' on more competitive loans
Kenyan banks will not be sharing information about consumers who have good credit histories and may have been able to access cheaper finance.Business Daily reports that while a new law was introduced that allows financial institutions to share data regarding clients that have previously defaulted on loans, it is illegal to distribute information regarding customers who have a favourable credit record. The Kenya Bankers' Association (KBA) noted the only way to alter the system so that it benefits consumers with strong borrowing statistics is for customers to campaign for lenders to share records with credit reference bureaus and other banks. "We estimate that sharing of positive customer information - to be done with their consent - will take between five to ten years to materialise unless borrowers move quickly to give the necessary consent," John Wanyela of the KBA was quoted as saying.
Banks and mortgage firms in the country began sharing data on non-performing loans with a Credit Reference Bureau (CRB) at the end of last month, after the CRB was licensed in February.