This archive report was first published on 25 June 2020.
Kenya's Credit Market Gets a Boost with New Code of Conduct ¶
On June 25, 2020, the Credit Information Sharing Association of Kenya (CIS Kenya) launched a draft credit information sharing code of conduct to strengthen credit information sharing in Kenya and protect borrowers.
The proposed code of conduct invites the public to comment by June 30, 2020. It aims to ensure fair treatment and protection of borrowers by regulating third-party credit information providers, including digital lenders and credit reference bureaus.
According to CIS Kenya CEO Jared Getenga, banks have voluntarily agreed to subscribe to the code of conduct. He also hinted that the Central Bank of Kenya (CBK) may require third-party credit information providers to subscribe to the code.
The code of conduct outlines the minimum ethical requirements for members of the association and provides a self-regulatory framework for data sharing and credit reporting. It includes principles such as lawfulness, minimality, consent and purpose specification, data retention periods, information quality, notification to consumers, full file sharing, security and confidentiality, access to credit information, and data standardization.
The proposed code of conduct will bring sanity to the credit market by setting a standardized credit information environment that promotes a code of ethics, trust, and integrity. It will also give market players an opportunity to police themselves.
Lawyer Eliud Ogutu lauded the code of conduct as a key development in the credit sector, saying it complements the CBK regulation and oversight mandate.
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