CBK licences third credit reference bureau

The Central Bank of Kenya (CBK) has granted a licence to Credit info Credit Reference Bureau Kenya Limited to offer credit information sharing services in Kenya.

The firm becomes the third credit reference bureau to be licenced in Kenya after Credit Reference Bureau Africa Limited and Metropol Credit Reference Bureau Limited, which were licensed in February 2010 and April 2011, respectively.

Credit info CRB Kenya Limited is majorly owned by Credit info International GmbH, headquartered in Wiesbaden, Germany.

It has credit information sharing operations in 15 other countries including Lithuania, Latvia, Romania, Slovakia, Czech Republic, Malta, Georgia, Kazakhstan, Ukraine, Iceland, Jamaica, Cape Verde, Tanzania and Guyana.

In Kenya, the establishment of credit reference bureaus is governed by the Credit Reference Bureau Regulations, 2013. “Since August 2010 to March 31, 2015, commercial banks and micro-finance banks have accessed 5,609,725 credit reports whereas individual customers have accessed 96,245 credit reports, “ said Samson Burgei, Communications Manager at the CBK.

Under the Credit Reference Bureau Regulations, 2013, individuals are entitled to one free personal credit report per year from any licensed credit reference bureau. Enhanced services are accessible on commercial terms.

“The entry of more credit reference bureaus into the Kenyan market will raise the level of competition in credit referencing and avail more diversified products which CBK believes will culminate in reduced cost of credit, more efficient screening of prospective borrowers and pricing of credit risks, said Burgei.