TransUnion Kenya, Metropol CRB and Creditinfo CRB Kenya Highlight Opportunities Made Possible by Credit Scoring (2024)

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Kenya, Nairobi,

11

November

2022

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10:01

Europe/Amsterdam

Credit Reference Bureaus (CRBs) stand together to help consumers better understand credit scoring

Credit scores are an essential financial tool that make so much possible in the modern world. They help Kenyans access financial products and services such as loans so that they can start small businesses, buy a dream home, or just make essential day to day purchases.

Assisted by these scores and other information, the country’s banks and other financial institutions offer credit or loans, make lending decisions, and determine the interest that they will charge for these products by assessing the risk of each consumer that applies for credit.

One of the many ways lenders assess the risk of a loan is by referring to a consumer’s credit score – a three-digit number calculated from their credit history that is provided by any of the three credit reference bureaus currently operating in Kenya: Creditinfo Kenya, Metropol CRB, and TransUnion Kenya.

Despite the progress in usage of consumer credit scores, some borrowers continue to have concerns about the use of adverse credit information. Specifically, there is a perception that banks use adverse credit reports to deny borrowers access to the loans they have applied for. To alleviate this concern, the Central Bank of Kenya has mandated all CRBs to display prominently on credit reports the Banking (Credit Reference Bureau) Regulations 2020 statement that “a customer’s credit score should not be used as the sole reason by a lender to deny a customer a loan.” This statement will serve as a reminder of the appropriate use of credit reports and will be beneficial to both customers and lenders.

Only finance providers can decide whether to offer credit to a customer, or to decline their application. Credit bureaus provide some of the information lenders use when making the decision, but each finance provider has their own individual lending policies and criteria for granting credit to a consumer, just one of which is a credit score provided by any one of the three credit reference bureaus.

A credit report reflects a consumer’s payment behaviour over time, using a range of data, including payment history, credit utilisation and the number of credit enquiries requested from sources such as banks, micro finance institutions, savings and credit cooperative organisations (SACCOs), and traders. It can enable Kenyans to get access to credit products they might not otherwise be considered for and can lead to preferential interest rates, product features and conditions.

Payment history is the most important aspect of a credit score, because it shows how consumers have managed their finances, including any late payments. A consumer’s payment history is entirely within their control and responsibility – just as improving their credit score is made possible by a good repayment culture that includes borrowing wisely and repaying promptly.

Consumers that have never taken out a credit product do not have a credit score – which means that they haven’t been ‘tested’ with credit, and lenders may be uncertain if the loan they grant will be paid back according to the terms of their agreement. Consumers who don’t have a credit score can still apply for credit, but lenders are likely to set more stringent terms for first time borrowers as they commence their journey to building a credit score.

“Credit bureau information and insights enable a more inclusive lending system by providing objective data that helps lenders assess consumers’ ability to manage their credit. Ultimately, this system and the lending it supports enhances Kenyans’ quality of life and strengthens our economy,” says Morris Maina, CEO TransUnion Kenya. “Credit scores are factual representations of a consumer’s credit history. Finance providers have their own risk policies when it comes to extending credit, and a consumer’s credit information is just one factor they consider when they make decisions.”

“Access to credit is the foundation for a healthy economy, but one of the obstacles for credit access is a lack of information about borrowers,” says Kamau Kunyiha, CEO of Creditinfo Kenya. “Financial institutions need accurate and relevant information about consumers to help make informed lending decisions. This is why credit bureaus services are crucial – they provide the data financial institutions need to provide individuals and businesses access to essential financial products and encourage a healthier financial ecosystem.”

“Credit bureaus manage credit risk throughout a consumer’s financial life cycle, helping to increase financial institutions’ efficiency and reduce their exposure to risk,” says Gideon Kipyakwai Group CEO at Metropol. “We use information from a variety of sources, such as Banks, MFIs, SACCOs, HELB and other service providers to translate consumers’ credit behavior into a score that is just one measure used by financial institutions make their lending decisions.”

Existing regulatory frameworks in Kenya ensure greater financial inclusion, underpinning fair and equal access to credit information by consumers and businesses. Being able to extend credit based on informed decisions can fuel economic growth, increase consumer access to essential resources and enable more efficient allocation of risk, costs and financial reserves. Access to consumer credit information enables consumers and private companies to freely transact with each other as the more objective information the business has, the more accurately it can meet consumer needs and preferences.

TransUnion Kenya, Metropol CRB and Creditinfo CRB Kenya Highlight Opportunities Made Possible by Credit Scoring (2024)

FAQs

What is a good CRB score in Kenya? ›

Credit scores range between 250-900 where 250 is considered a bad score and 900 is a good score. A good credit score means you are low-risk and you qualify for a low-interest rate.

How can I get CRB clearance certificate from TransUnion? ›

TransUnion CRB
  1. Register and pay a total of Kshs 50 to PayBill number 212121. ...
  2. To get a certificate from this bureau pay Kshs 2200 to Paybill number 212121.
  3. Forward the M-pesa transaction message to e-mail-cert@transunion.co.ke.
  4. An updated certificate of clearance will be emailed to you.

How do I check my CRB credit score? ›

3. Checking CRB status in Kenya via Transunion
  1. Send your full names to 21272.
  2. Enter your ID number.
  3. Choose CC (Credit Information)
  4. Wait for a reply Message with Credit status.

How long does a CRB listing last in Kenya? ›

How long is a default listing retained on CRB? A default listings retained on CRB for 5 years from the last date of payment.

How do I clear myself from CRB Kenya? ›

How to get out of the CRB
  1. Check your credit bureau report. ...
  2. Get up to date with your debts. ...
  3. Negotiate with financial institutions and seek to restructure your debt. ...
  4. Request your clearance certificate/letter.
Apr 27, 2023

How many Kenyans are blacklisted by CRB? ›

"This is very important; 4 million Kenyans have been excluded from any formal borrowing because of blacklisting. They have been left at the mercy of shylocks." He urged the credit bureau to walk that journey with hustlers so that they are not disadvantaged, adding that the model of listing defaulters should be amended.

How much does it cost to get a CRB clearance certificate? ›

*A fee of Kshs. 2200 will be applicable for all clearance certificate applications.

How long is CRB clearance certificate valid? ›

How long is a COC valid? A COC is valid as at the date of issue. This is because CRBs receive information on a daily basis which could alter the customer information. How much does a COC cost?

How do I get a clearance from Metropol CRB? ›

Metropol CRB

Input your ID number as account number on Mpesa. Metropol will send you an SMS with a reference number, Crytobol PIN, plus a Link to view your credit report. At this point, pay Clearance Certificate charges – Ksh. 2200 to Paybill number 220388.

How do I check if I am blacklisted? ›

Blacklisting typically occurs when an individual fails to meet their financial obligations, resulting in negative consequences such as being unable to secure loans, credit cards, or even opening a bank account. To check if you are blacklisted, you can receive an annual complimentary credit report.

How do you know if you are blacklisted in CRB? ›

To check your CRB status on TransUnion:
  • You first need to register by sending your full names to 21272. The SMS charges is sh. ...
  • You then enter your ID number.
  • Choose Credit Status.
  • You will receive your CRB status. If you receive good, it means you are not blacklisted while default means blacklisted.
Mar 10, 2022

How can I improve my CRB credit score? ›

Pay your bills in time

If there are any accounts with late payments, make sure to stay on top of the payments. The best way to improve your credit score is to pay off your debts completely, including any credit card bills. If you have credit card debt, try your best to pay it off as quickly as possible.

What is a good credit score in Kenya? ›

A score of 800 or above on the same range is considered to be excellent. Most credit scores fall between 600 and 750. Higher scores represent better credit decisions and can make creditors more confident that one will repay their future debts as agreed.

Is CRB still active in Kenya? ›

Saturday February 17 2024. The Court of Appeal in Kenya has reinstated Credit Reference Bureau (CRB) Regulations, which were nullified by the High Court last year, giving the Central Bank of Kenya the authority to regulate entities that help lenders to assess data of borrowers.

How do I remove my name from my CRB blacklist? ›

However, you can get off the blacklist earlier by finding out from the bureau who submitted your name for blacklisting, clear your loans and get a clearance letter from the lender and emailing the letter to the CRB to have it resolved. You should also physically visit the CRB to follow up and ensure it is resolved.

What is a CRB 65 score of 3? ›

For patients with a score of 3 to 5, hospitalization is indicated, and the patient should be assessed for possible intensive care unit admission, especially if the score is 4 or 5. References: Lim WS, van der Eerden MM, Laing R, et al.

What is the minimum amount for CRB? ›

A minimum threshold of Kshs. 1,000 had been set for negative credit information, this meant that any amount below Kshs. 1,000 would not be submitted to CRBs, and any borrowers whom had non-performing loans of below Kshs. 1,000 whom were 'blacklisted' were to be delisted.

How to improve CRB credit score? ›

Pay your bills in time

If there are any accounts with late payments, make sure to stay on top of the payments. The best way to improve your credit score is to pay off your debts completely, including any credit card bills. If you have credit card debt, try your best to pay it off as quickly as possible.

What is a good credit risk score? ›

For a score with a range between 300 and 850, a credit score of 700 or above is generally considered good. A score of 800 or above on the same range is considered to be excellent. Most consumers have credit scores that fall between 600 and 750. In 2023, the average FICO® Score in the U.S. reached 715.

References

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