Risk management firm Veri-Credit has entered a partnership with business lobby Kenya National Chamber of Commerce to provide credit risk management solutions to members.
The MOU will see KNCCI members get cash flow problems solved as Veri-Credit will provide access to non-performing credit information on its analytics platform, available on both web and mobile apps provides valid and verifiable payment history.
The system follows a closed user group model that allows exchange of Days Beyond Terms (DBT) credit payment performance information on the compliance of credit terms by their customers.
Many businesses have accumulated credit balances owing to delayed payments from their corporate customers thus compounding their cash flow and profitability often resulting in employee layoffs to sustain sufficient cash flow to maintain minimum operations.
The domino effect of this is a substantial reduction in tax revenue derived from corporate and personal tax contributions. Requests for credit reports by customers increased by 56 per cent during the election year 2017, partly fuelled by demand for CRB clearance certificates as a requirement for eligibility to contest for various political posts,” says CBK in its annual banking sector report released last week.
The credit information sharing mechanism has gained increased acceptance as an integral component of the credit market in Kenya since its rollout in July 2010.