Understanding Soft vs Hard Credit Checks in Kenya

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Credit checks play a central role in Kenya’s lending ecosystem, helping institutions evaluate repayment behaviour while giving consumers a clear view of their financial standing.

These checks are governed by the Central Bank of Kenya (CBK) through the 2020 Credit Reference Bureau (CRB) Regulations, which outline how licensed bureaus (TransUnion, Metropol, and Creditinfo) collect, store, and share credit information.

Data is sourced from banks, SACCOs, digital lenders such as M-Shwari and Tala, microfinance institutions, and utility providers.

The result is a credit report accompanied by a score that ranges from 200 to 900, where scores above 700 often qualify borrowers for better interest rates and higher limits, while lower scores may indicate past repayment issues that restrict access to credit.

Soft Credit Checks in Kenya

Soft credit checks, also known as soft pulls, allow someone to view your credit information without affecting your score. These checks do not signal a credit decision, and lenders cannot see them when reviewing new loan applications.

They occur in several everyday situations:

When you check your own credit report using TransUnion’s Nipashe app, Metropol’s *433# USSD code, or Creditinfo’s portals.
During pre-qualification for loans where a lender estimates eligibility without final approval.
When employers conduct background checks.
While obtaining insurance quotes or verifying identity.
When accessing your free annual credit report, provided once per year by each CRB as required under CBK regulations.

Soft credit checks are visible only to the consumer, supporting privacy under the Data Protection Act of 2019. They enable unlimited monitoring, allowing individuals to track improvements, detect errors, or confirm the impact of consistent repayments.

Regular reviews help identify issues early, and consumers who pay attention to their reports often notice gradual score improvements, sometimes increasing by 35 to 45 percent over time with consistent repayment behaviour.

Hard Credit Checks in Kenya

Hard credit checks, also called hard pulls, are more detailed and directly influence your credit score. These checks occur when a formal credit decision is being made, such as when applying for:

Personal loans
Credit cards
Overdraft facilities
Mobile loans where approval depends on a full credit evaluation

Hard inquiries require explicit consent and usually lower the credit score by 5 to 10 points. They remain visible to lenders for up to two years, which means several hard inquiries in a short period may signal higher borrowing risk.

This effect is more pronounced for individuals with thin credit histories, particularly young Kenyans who rely heavily on mobile lending platforms.

Under CBK rules:

Banks list negative information after 90 days of non-payment.
Digital lenders can initiate listings after 30 days of delinquency.
There is a minimum threshold of KES 1,000 for negative credit information listing. Defaults below this amount are not listed.

These timelines highlight why consumers must be cautious when applying for multiple loans, especially across several apps. Hard pulls triggered by each application can compound the score impact and influence the terms offered by lenders.

A borrower might find interest rates rising from around 13 percent to upward of 20 percent based on credit risk indicators.

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