Kenyan finance ministry aims to improve credit information sharing

Aug 10, 2012

The Kenyan finance minister has expressed a desire to improve the way credit information is shared in the country.

The Kenyan finance minister has expressed a desire to improve the way credit information is shared in the country.

According to Njeru Githae, the Kenyan finance minister, many banks have been criticised for issuing incorrect data about borrowers to bureaus, the Star reports.

However, he said this problem has arisen because it can take three years "to remove a name from that register even if afterwards you come and clear your loan".

This, he stated, means the information being handed over by banks is not actually incorrect.

Instead, Mr Githae said problems are arising because the information sharing process is not effective enough.

The Kenyan finance ministry is therefore planning to discuss the issue with officials at the Central Bank, with a focus on proposed new regulations that could lead to procedures being improved considerably.

Under the new system, financial institutions that issue incorrect client information will face penalties, while utility companies will be required to submit data they possess.ADNFCR-2976-ID-801426743-ADNFCR