Reprieve for defaulters listed at CRB as Ruto delivers on promise

Expiry of credit standing will depend on repayment performance in a six-month period. [iStockphoto]

Close to 4.2 million Kenyans negatively listed at the Credit Reference Bureaus (CRBs) will soon be removed from the list of defaulters as President William Ruto moves to actualise one of his campaign pledges.

On Monday the Central Bank of Kenya unveiled the credit repair framework that will see commercial banks, microfinance banks and mortgage finance banks write off at least 50 per cent of the outstanding digital loans that had been non-performing by end of October 2022.

With the outstanding balance being estimated at Sh30 billion, the write-off will see the loss of at least Sh15 billion worth of bad loans, a move that is likely to dent their bottom line.