Subscribe to our newsletter and stand a chance to win TUKO branded gifts!
Thank you!
Check your email and confirm your subscription
You are already subscribed to our newsletter!
Check your inbox to be the first to know the hottest news
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Global site navigation
Local editions
PAY ATTENTION: Help us change more lives, join TUKO.co.ke’s Patreon programme.
Kenyan supermarkets and small shops purchasing goods on credit will need a clean credit score for suppliers to deliver goods.
This followed a move by manufacturers and wholesalers to use Credit Reference Bureau (CRB) scores to vet retailers.
CRBs reported an increase in the number of suppliers who deliver goods before payments from retailers, using their credit rating.
PAY ATTENTION: Follow us on Instagram – get the most important news directly in your favourite app!
Read also
Five things to know about the Wirecard scandal
The bureaus said goods distributors use the score when onboarding new retailers, adding that their database has large suppliers and two e-commerce platforms, Business Daily reported.
Metropol Corporation CEO Gideon Kipyakwai said the distributors come from 80 industries out of the listed 243 industries in Kenya.
The distributors aimed to lock off rogue retailers in the market who default on payment, leading to challenges in the supply chain
The bureaus underwent reforms to list borrowers based on their credit score rather than blacklisting.
President William Ruto directed the Central Bank of Kenya to work on CRB reforms that will give Kenyans access to credit best on their scores.
CBK released an update on the same, saying it is working with CRBs to align them to best practices.
Read also
Bolt Warns Drivers Against Overcharging Customers: “We Don’t Condone Touting”
The regulator, however, called on borrowers to honour their debt obligations and engage lenders in case they face challenges in repayment.
Some of the reforms announced by the regulator included improving the credit standing of mobile phone digital borrowers listed by CRB.
In the framework, lenders will give a 50% discount on outstanding digital loans at the end of October 2022.
The borrowers will then be required to clear the remaining loan by May 31, 2023, after which their CRB ratings will be reviewed.
Companies like Meta, the parent company for Facebook, WhatsApp and Instagram, revised service terms to grant traders access based on their creditworthiness.
Meta said businesses using its advertising services would be granted access based on their CRB rating.
The new rules that take effect in January 2022 will see Credit Reference Bureau share information with social media platforms.
PAY ATTENTION: Click “See First” under the “Following” tab to see TUKO News on your News Feed
Source: TUKO.co.ke
Subscribe to our newsletter and stand a chance to win TUKO branded gifts!
Thank you!
Check your email and confirm your subscription
You are already subscribed to our newsletter!
Check your inbox to be the first to know the hottest news
Recommended for you
Subscribe to our newsletter and stand a chance to win TUKO branded gifts!
Thank you!
Check your email and confirm your subscription
You are already subscribed to our newsletter!
Check your inbox to be the first to know the hottest news
Subscribe to our newsletter and stand a chance to win TUKO branded gifts!
Thank you!
Check your email and confirm your subscription
You are already subscribed to our newsletter!
Check your inbox to be the first to know the hottest news
Subscribe to our newsletter and stand a chance to win TUKO branded gifts!
Thank you!
Check your email and confirm your subscription
You are already subscribed to our newsletter!
Check your inbox to be the first to know the hottest news
