NAIROBI, Kenya, Jul 5 – Central Bank of Kenya (CBK) has ordered banks to review their listing rules which extends the loan payment to six months.
This comes after the regulator issued a circular asking mobile loans lenders to operate as normal bank loans.
Financial institutions will be expected to start implementing the rules stipulated under the new template in the next three months.
The new rules will see non-performing loans get classified as per practical guidelines which demand that any loan due over 180 days be considered doubtful.
“Among the challenges identified by the technical working group were the difficulties in applying the current data specification template to no traditional forms of credit such as digital loans,” said CBK Director of Banking Supervision Gerald Nyaoma in the circular.
A report by the Betting Control and Licensing Board stakeholders had also revealed that half a million Kenyans were blacklisted by the Credit Reference Bureau, where majority are young people under the age of 35 and are jobless.
The bank regulator had also mentioned it was working to instilling stiff measures that will regulate online mobile lenders.
Since then Members of the Digital Lenders Association of Kenya generated a code of conduct meant to relegate its members, who are online money lenders.