This archive report was first published on 29 June 2019.
Kenya's digital lenders have announced that they will no longer forward names of small amount defaulters to the credit reference bureau (CRB) for blacklisting.
This decision comes after the banking association of Kenya urged digital lenders not to forward names of defaulters with small amounts to the CRB, citing the potential negative impact on the small and medium-sized enterprise (SME) sector.
The digital lenders association has called for the creation of stringent policies that will guide the listing of defaulters at the CRB, emphasizing the need for clear policies and frameworks to govern how defaulters should be listed.
According to the association, its members will prevail on their customers to clearly state the terms and conditions of their services, enhancing accountability in the sector.
Additionally, digital lenders have been advised to ensure the collection of debts is done in a more humane manner and data collection should be done with customers' consent.
As reported on KBC on June 29, 2019.
