4.2 million Kenyans removed from CRB, their unpaid mobile loans reduced by 50% as CBK announces deal

The Central Bank of Kenya on Monday, November 14 announced a programme that will see Kenyans blacklisted by CRBs for defaulting on mobile loans pay only 50% of the amount they owe digital lenders.

In a bid to improve the credit standing of mobile phone digital borrowers whose loans are non-performing, the CBK rolled out the programme dubbed Credit Repair Framework.

"Through the framework, the institutions will provide a discount of at least fifty percent of the non-performing mobile phone digital loans outstanding as at end October 2022, and update the borrowers credit standing from non-performing to performing," CBK explains in a statement sent to newsrooms.

"It is anticipated that the Framework will enable over 4.2 million mobile phone digital borrowers, adversely listed with CRBs, to repair their credit standing. The total value is approximately KSh30 billion, equivalent to 0.8 percent of the gross banking sector loan portfolio of KSh3.6 trillion at end of October 2022," CBK adds.

Consequently, the lenders will contact eligible borrowers to renegotiate repayment plans for a period up to May 31, 2023, when the 50% discount offer lapses, as well as the discounted outstanding loans.