The Central Bank of Kenya has proposed a framework to restructure the credit of Kenyans whose loan defaults have been flagged up to Credit Reference Bureaus (CRB).
On Monday, November 14th, CBK issued a notification announcing the launch of a Credit Repair Framework designed to enhance the creditworthiness of digital borrowers using mobile phones.
According to the report, commercial banks, microfinance banks, and mortgage finance firms that provide loans to mobile phone customers all agreed to the initiative.
According to the announcement, the framework would cover mobile phone loans with a 30-day payback period.
The regulator of the financial sector claimed that the framework was designed with the intention of addressing the personal and micro business sectors, which were both impacted by the Covid-19 epidemic.
Over 4.2 million mobile phone digital borrowers who are adversely listed with CRBs will be able to improve their credit status with the help of the Framework.
The duration of program is scheduled to end on May 31st, 2023.