Five Institutions that Have Access to your Credit Rating in Kenya

Credit referencing hit Kenya just the other day and with a big bang. Mention CRB (Credit Referencing Bureau) anywhere and notice all ears pricked. It affects everyone who needs to access loans.

In Kenya, most if not all credit providers such as banks, microfinance institutions, Sacco’s, etc. share information of borrower's outstanding loans and credit advances. This is done through licensed Credit Reference Bureaus (CRB) licensed by the Central Bank of Kenya. Before you can access any loan facility, your credit reference information must be accessed, as it is critical to informing your lender about your repayment pattern.

Other terms you’ll hear along the financial corridors, that refer to credit information sharing include credit referencing or Credit reporting. The report is submitted on a monthly basis, and it contains your entire loan book, date, and repayment information.

Credit rating is not a concern if you are paying your loan on time. Here are some benefits for paying your loan on schedule.

It distinguishes you from persistent defaulters and keeps your reputation intact. Makes it easy for you to negotiate loan terms following your credit score evidenced in the CRB report. You can take advantage of the lenders competition to secure better terms since you can quickly change your credit provider. To the lender, this information strengthens the risk management processes and makes loan application for their clients faster and hassle free. In addition, it is easy for them to determine the character of their applicants using the 5 Cs, Character, Capacity, Capital, Collaterals, and Conditions. There are five major credit reporting agencies in Kenya and they are:

1. TransUnion This global reference provider was recently launched in Kenya as a mobile based credit reference service, to enable customers to access their credit rating. The TransUnion Nipashe SMS short codes ‘21272’ or ‘21CRB’ allow subscribers to access their up-to-date and accurate credit score information via SMS at a registration charge of Ksh 50 per SMS and Ksh 19 per SMS for every inquiry. The service comes amid a rampant growth of mobile micro lenders like the M-shwari, Saida, and Tala.

2. Metropol Credit Reference Bureau Ltd Started in 1996 as a business information and credit management company, it collaborated with GCR (Global Credit Rating) and began to provide credit rating services. With this company, credit providers can now effectively manage credit risks, improve efficiency, while maximizing profits.

3. Credit info Credit Reference Bureau Limited The company allows its clients to apply for the Consumer Creditinfo Monitoring. Subscribed clients also get email updates whenever changes in their profile take place. Through its robust database of information, businesses can make right decisions.

4. Jubilant Kenya Jubilant Kenya believes that any business is there to serve all the needs of her customers. The company prides itself as the leading retail community microfinance for credit and investment.

5. CRB Africa CRB Africa boasts of being the biggest credit reference bureau that gives not only factual credit but also the location and identity of a loanee. In a bid to cut down on negative trends, the company offers training on credit reference to people in all departments.

It is always advisable to be checking your credit standing with CRBs in Kenya. Having a good stand will make it easy for any lender to lend you money as that is in itself proof that you will repay.

#JuneOdero