Editorials

Extend CRB listing relief

cbk (1)

Central Bank of Kenya. FILE PHOTO | NMG

Summary

  • Workers and businesses defaulted on loans worth Sh30 billion in the four months to June when Kenya imposed stringent containment measures.
  • The CBK should take this into considerations and extend the directive on CRB listing to cushion Kenyans still struggling with their loan payments.

The Central Bank of Kenya (CBK) should consider the prevailing economic environment before removing the moratorium on credit reference bureau (CRB) listing.

The CRB listing relief was part of a stimulus package announced on March 25 to cushion distressed businesses and individuals from the effects of the coronavirus pandemic.

A majority of individuals and businesses are still struggling in the wake of the coronavirus economic fallout. Most Kenyans have lost jobs and employers have warned that more losses are on the way.

The economic hardship is reflected in the jumping default rates. The CBK data shows that non-performing loans rose to Sh379.9 billion in June, up from Sh349.9 billion at the end February — the sharpest four-month increase in recent history.

Workers and businesses defaulted on loans worth Sh30 billion in the four months to June when Kenya imposed stringent containment measures.

The CBK should take this into considerations and extend the directive on CRB listing to cushion Kenyans still struggling with their loan payments.