The Central Bank of Kenya (CBK) has rolled out a credit repair plan that will see close to 4.2 million mobile money borrowers delisted by credit reference agencies.
In a statement released by CBK, lenders will grant 50 percent discount to defaulters with outstanding loans at the end of October 2022 and the grants will end on May 31, 2023.
“The framework will cover loans with a repayment period of 30 days or less and were offered by these institutions through mobile phones,” CBK said in a statement.
The plan will cover over 4.2 million Kenyans who are now listed with credit reference bureau.
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The initiative is part of the post-Covid-19 economic recovery plan and targets borrowers in personal and micro-enterprise sectors.
The effects of the Covid-19 error still linger among Kenyans. The segment is expected to bring to uplift the borrowers to access credit and other financial services as they rebuild their lives and livelihoods.
The move will see default borrowers’ performance will change from non-performing to performing.
Read also: CRB to scrap over 4 million Fuliza loan defaulters starting November
This just comes Months after the central bank of Kenya gave out an updated list of digital credit lenders approved by the top bank.
Of the 288 applicants, the central bank of Kenya only approved ten lenders.
The president of Kenya that Kenyans who have been blacklisted are suffering with where to get loans.
“That is very important because they have been excluded from any formal borrowing because of black listing and have been left at the mercy of shylocks and predatory lenders that exploit them with Kenyans paying as much as 1000 per cent,” Ruto said in September 2022.
