Loan defaulters have nowhere to hide in Kenya after a law requiring them to be listed at the credit reference bureaus (CRBs), meaning that once you have defaulted your SACCO loan, your records will be at the bureau and you won’t be eligible for even soft loan from banks.
Initially only individuals who defaulted loans with local banks were listed at the credit reference bureaus (CRBs), but now even HELB loan defaulters, SACCO and Microfinance loan defaulters will find their names at the CRB registers.
Failure to pay power, water and telephone bills will also see one listed as a defaulter at the credit reference bureaus, which will make it impossible for them to access loans.
This law came into effect on Sunday January 1,2017 following the amendments of the Finance Act 2016, which also allows power, water and telecom companies to refer defaulters to credit reference bureaus.
