Commercial banks, SACCO's microfinance institutions, and digital lenders are in the process of transitioning into Risk-based Credit pricing framework as a regulatory requirement. Kenyans whose credit scores are below the minimum required by lending institutions for loan consideration are, however, faced with a decision of
In his inaugural speech on September 13, 2022, H.E, the President, William Ruto - backed the assigning of credit scores to borrowers in a push to allow CRBs to ensure every Kenyan is not denied credit.
Credit rating uptake in Kenya has been on the rise as more lenders gradually adopt the risk-based lending mechanism.
According to the Credit Reference Bureau (CRB) Regulation
2020, lenders are mandated to use a customer’s credit score when appraising a
credit application and in determining the interest