The Central Bank of Kenya had announced a six months CRB listing break effected between April and September. After the 90-day CRB listing break notice expires, thousands of the credit defaulters will be listed in the country’s three CRB listing companies – TransUnion, Creditinfo, and Metropol.
It will be a busy season for the CRBs as they blacklist the increased number of defaulters from January. Notably, the default value could be higher if the CBK did not direct for credit listing rescheduling.
Before the covid 19 pandemic, there were slightly above 3.2 million Kenyans listed with CRB for credit defaults. Since the government imposed the covid 19 pandemic restrictions, thousands of people have lost jobs, and others closed their businesses leading to high credit defaults.
Many people are struggling to clear their debts while others have defaulted. Due to covid 19 pandemic effects on the overall economy, the loan defaults have increased by Kshs 53.95 billion to Kshs 403.9 billion. The recorded increase is for the eight months since the first covid 19 infection case was reported in the country.
The main sectors that had registered high defaults include tourism, restaurants, and real estate, among others. Notably, after the lifting of the restrictions by the government, some borrowers have resumed repaying their debts.