The Central Bank of Kenya (CBK) has announced the expiry of the suspension of listing of borrowers who have defaulted on loans by financial institutions.
The suspension took effect on the 14th of April 2020 and was for a period of six months ending September 30, 2020. It was meant as a means of cushioning borrowers during the height of the Covid-19 pandemic. However, the suspension did not apply for loans that were non-performing before April 1.
Financial institutions will from today, assess the performance of loans that were active before April 1. For the loans in arrears, the period for determining performance starts from October 1. If a loan is in arrears, sixty days from today, the financial institution will give the borrowers notice of their intention to list them on CRB. If the loan will still be in arrears after 30 days, the financial institution will the proceed to list the borrower on CRB.
As such, if you were paying your loan without fail before suspension but it has somehow fallen into arrears courtesy of the tough economic times. You have 3 months to sort it out before you are listed on CRB.