News

 

Nairobi, 13th February, 2020

  

The 5th edition of the Credit Information Sharing (CIS) Conference was held today in an event that was graced by The National Treasury, the Central Bank, the World Bank among other key stakeholders from all over Africa and the world. The main aim of the conference is to enhance credit information sharing while building a robust credit system in Kenya.

 

 

 

While officially opening the event, Senior Economic Advisor To The Cabinet Secretary Dr. Geoffrey Mwau who represented the National Treasury said the conference is aimed at taking stock of the progress in our credit markets and finding solutions to some of the challenges that hider effective financial intermediation. Dr. Mwau spoke of the reasons why the government needs to be concerned with improving the CIS mechanism highlighting the issues of depth of data, which is ensuring availability of both positive data or negative data; and breadth of data which is expanding the data set to include utilities and host of other credit providers that may or may not necessarily undertake traditional lending. He also mentioned that regular updates of credit scores should be done for real time credit patterns to help ensure regular monitoring of quality of data from non-regulated credit providers. He also pushed for regulation of some industry players who compromise data quality through gross regulatory arbitrage.


Dr. Mwau tasked the Conference to coming up with solutions to the obstacles to reforms emphasizing on the dilemma of balancing cost and benefits brought about by innovative lending approaches introduced by digital lending. He also insisted that adequate focus must be placed on the quality, reliability and comprehensiveness of data that informs credit decisions adding that a number of data sources are unregulated.


In conclusion, Dr. Mwau said that the government is in the process of developing a National Credit Information Sharing Policy, and will be rolling out a CIS Financial Literacy and Public Awareness Campaign that will ensure the government entrench Credit Information Sharing in Government policy in a way that informs all future legal reforms and also carries the public with it.


Also at the event was Deputy Governor of the Central Bank, Sheila Mbijiwe who decried unethical loaning practices by the unregulated money lending companies terming it as ‘predatory lending’ and said that the Central Bank of Kenya will soon change laws to oversight them. Ms. Mbijiwe encouraged transparent and customer centric banking which will encourage growth of the financial sector while curbing unethical practices.