The Centre Bank of Kenya (CBK) has rolled out a credit repair plan that will see close to 4.2 million mobile money borrowers delisted by credit reference agencies.
In a statement released Monday, the apex bank said lenders will grant 50 per cent discount to defaulters with outstanding loans as at the end of October 2022 and the framework will expire on May 31, 2023.
"The framework will cover loans with a repayment period of 30 days or less and were offered by these institutions through mobile phones," CBK said in a statement.
The plan covers over 4.2 million borrowers, adversely listed with Carbs to repair their credit standing.
The total value is approximately Sh30 billion equivalent to 0.8 per cent of the gross banking sector loan portfolio of Sh3.6 trillion as at the end of last month.
The initiative is part of the post Covid-19 economic recovery plan and targets borrowers in personal and micro enterprise sectors.
The adverse effects of the pandemic continue to linger for the covered borrowers. The framework is expected to enable this segment of borrowers to access credit and other financial services as they rebuild their lives and livelihoods," the top bank said.
It has however, asked the public to always honour their repayment obligations.
