Here’s How the Credit Information Sharing Framework Actually Works in Kenya

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Kenya’s Credit Information Sharing (CIS) framework, established in 2010 under the supervision of the Central Bank of Kenya (CBK), allows financial institutions to share borrowers’ credit histories through licensed Credit Reference Bureaus (CRBs), creating a transparent lending environment where both positive and negative credit behavior is recorded.

Before the system’s introduction, banks relied heavily on limited personal knowledge and collateral, which made lending risky. In 2006, the country’s non-performing loans (NPLs) averaged 18.9%, largely due to gaps in borrower information.

To address this, the Banking Act was amended in 2003 and 2006, and supporting regulations were gazetted in 2008, paving the way for the rollout of Kenya’s Credit Information Sharing (CIS) framework. The goal was to reduce default risks, expand credit access, and ensure fair treatment of borrowers.

As of 2019, the system had expanded rapidly, covering 36.4% of adults compared to only 4.7% in 2013. This growth shows how data-driven lending has gained traction, with both banks and borrowers benefiting from greater accountability and financial inclusion.

At the core of Kenya’s CIS framework are three CRBs in Kenya:

TransUnion Africa, licensed in 2010,
Metropol Credit Reference Bureau, licensed in 2011, and
Creditinfo Kenya, licensed in 2015.

These CRBs are regulated by the CBK to ensure governance, capital adequacy, data integrity, and cybersecurity compliance. Their main function is to collect, analyze, and disseminate borrowers’ credit information. They generate detailed credit reports, calculate credit scores (ranging from 200 to 900), and issue Certificates of Clearance (CoCs) that verify a borrower’s repayment history.

The system operates through data submitted by regulated lenders, including commercial banks, microfinance banks, mortgage finance companies, and, since 2020, SACCOs. However, unregulated digital lenders were excluded in 2020 following widespread complaints about data misuse and consumer harassment.

Every month, by the 10th, lenders are required to submit complete credit data to the CRBs. This includes positive information, such as loans paid on time, and negative information, including defaults, bounced cheques, and confirmed fraud cases.

According to the 2013 CRB Regulations, later revised in 2020, only defaults above KSh 1,000 are reported. This threshold helped clear over five million small-value borrowers who previously remained blacklisted for minor debts.

Once received, the CRBs process this data to update borrowers’ credit profiles. Lenders can then access these profiles only when evaluating active loan applicants, using the information to assess risk based on the “5 Cs” of credit: Character, Capacity, Capital, Collateral, and Conditions.

Borrowers with higher scores, typically above 800, are seen as low-risk and can access loans at better interest rates, while those below 400 are viewed as high-risk and may face tighter lending terms.

The CBK has continuously refined the system to ensure fairness and consumer protection. In November 2022, it directed CRBs not to deny credit purely based on negative listings. It also introduced a Credit Repair Framework to help borrowers rebuild their profiles. Under this initiative, 50% of non-performing loans (NPLs) less than 30 days overdue were waived, covering up to KSh 30 billion worth of credit.

During the COVID-19 pandemic, credit listing rules were temporarily relaxed. Between 2020 and 2021, borrowers with loans under KSh 5 million were shielded from negative listing for six months as part of relief measures to cushion individuals and businesses from financial strain.

Borrowers have a range of rights under the CIS framework. Each person is entitled to one free credit report every year from each CRB. If an error appears in their credit file, they can file a dispute, and the CRB must investigate and resolve it within 15 days. If the data is confirmed to be incorrect, it must be corrected or deleted immediately.

In addition, CRBs are legally required to notify individuals before adding any negative information to their records.

The Association of Kenya Credit Providers (AKCP) serves as an alternative dispute resolution body, handling escalated complaints that may arise between consumers and lenders.

First-time Certificates of Clearance (CoCs) are issued free of charge, making them useful for job seekers, visa applicants, and borrowers who want to prove good credit standing. CRBs also retain negative credit information for five years after the debt is fully repaid, after which it is permanently deleted.

Kenya’s Credit Information Sharing (CIS) framework continues to evolve as a key part of the country’s financial ecosystem. By encouraging responsible lending and empowering borrowers to maintain clean credit histories, the framework has made access to credit more transparent and fair.

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.