Commercial banks and other lending institutions are set to resume listing loan defaulters effective Thursday with Credit Reference Bureaus (CRB) as the moratorium on listing ends.
Speaking earlier on Wednesday, Central Bank of Kenya (CBK) Governor Patrick Njoroge ruled out a further extension to the moratorium introduced in March as part of measures to cushion borrowers from adverse economic effects of the pandemic.
The end of the moratorium is expected to see more Kenyans listed on the dreaded CRBs are the rate of loan defaulting continues to soar.
The CBK has challenged borrowers in distress to move in earnest to resolve their loan payments including updating redemptions or seeking out reprieve as the window given to banks to restructure loans remains open to March 2021.
According to data collected from Kenya’s three official credit reference, 3.2 million Kenyans were listed as loan defaulters at the end of 2019 in comparison to 2.7 million in 2018.
Listed loan-defaulters are however bound to increase after the banking sector ratio of gross non-performing loans (NPLs) hit a high of 13.6 per cent in August or an equivalent Ksh.354 billion.