Credit Reference Bureau (CRB) and other blacklists will remove over 4 million fuliza loan defaulters starting November, following the official announcement from the government and lenders.
The announcement was made yesterday after a meeting of President William Ruto and officials from Treasury, Central Bank, Safaricom, Kenya Commercial Bank (KCB) and NCBA.
Ruto attributed that the lenders agreed to develop a new credit score system as opposed to blacklisting customers.
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He said that the Government will underwrite the risks that will come with the new move.
“We must think beyond financial inclusion to a more accessible and affordable credit model. I am very happy that between 4 to 5 million Kenyans will, by the beginning of November, be out of the CRB blacklist. This is very important because these Kenyans have been excluded from any formal borrowing and have been left at the mercies of shylocks that exploit them.” President Ruto stated.
Further, starting on October 1st, Safaricom in collaboration with KCB and NCBA. announced a new reduced price of up to 40% and instituted a three-day grace period for debtors.
Customers who borrow between Sh500 and Sh1000 will now incur a daily interest fee of Sh6, down from Sh10.
Borrowers of loans between Sh101-499 would pay a daily fee of Sh3, down from Sh5.
Customers borrowing between Sh1001 and Sh1500 would therefore pay Sh18, a 10 percent savings from Sh20, while users borrowing between Sh1500 and Sh2500 will actually pay Sh20, a 20 percent reduction from Sh25.
Those who seek to draw Sh2500-70,000 will also enjoy a 16.7 per cent discount, to pay a daily charge of Sh25 down from Sh30.
President Ruto applauded the decision and said it will offer the listed Kenyans a new chance to seek loans and prevent their abuse by what he called “predatory lenders.”
According to President Ruto, the action would be crucial in ensuring the financial inclusion of low-income individuals.
Read also:
- President Ruto Supports Fuliza’s 50% Reduction of Tariffs.
- NCBA, KCB partners with Safaricom to drive financial inclusion.
