CREDIT REFERENCE BUREAU REGULATIONS, 2019
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C E N T R A L B A N K O F K E N YA
CREDIT REFERENCE BUREAU REGULATIONS, 2019
1
THE BANKING ACT
(Cap. 488)
THE MICROFINANCE ACT
(No. 19 of 2006)
THE SACCO SOCIETIES ACT
(No. 14 of 2008)
CREDIT REFERENCE BUREAU REGULATIONS, PART III – OPERATIONS OF CREDIT REFERENCE
2019 BUREAUS
ARRANGEMENT OF REGULATIONS 15 Activities of the Bureaus.
16 Use of Agents.
Regulations
17 Actions requiring prior approval of Central Bank.
18 Nature of information to be shared.
PART I – PRELIMINARY 19 Identification details.
1 Citation. 20 Protection from liability.
2 Interpretation. 21 Prohibited information.
22 Form of consent.
PART II – ESTABLISHMENT AND LICENCING OF 23 Conditions and form of disclosure to customers.
CREDIT REFERENCE BUREAUS 24 Other sources of information.
25 Use of public data by Bureau.
3 Qualification and prohibition to operate without a 26 Duty to provide accurate information.
licence. 27 Restrictions on the use of customer information.
4 Application for licence. 28 Responsibilities of a Bureau.
5 Evaluation of application. 29 Key facts document on the right to obtain and
6 Inspection of premises and systems. dispute credit report.
7 Issuance of licence. 30 Subscriber’s obligation in respect of information
8 Bank Guarantee. obtained from Bureaus.
9 Refusal to issue a licence. 31 Receipt of credit reports by third parties.
10 Validity of the licence. 32 Fees.
11 Publication of list of Bureaus. 33 Data management and quality control.
12 Revocation or suspension of licence. 34 Updating and maintaining information.
13 Annual licence fee. 35 Security and control measures.
14 Non-Transferability of licences. 36 Customers’ rights of access and correction.
37 Access to own information
38 Credit scores
39 Use of credit scores
2 C E N T R A L B A N K O F K E N YA
CREDIT REFERENCE BUREAU REGULATIONS, 2019PART IV – CROSS BORDER CREDIT INFORMATION PART VIII – GENERAL PROVISIONS
SHARING 57 Mandatory standards.
40 Authority to share cross-border credit information. 58 Responsibilities of institutions.
41 Establishment of place of business outside Kenya. 59 Central hub
60 Data submission templates
PART V – GOVERNANCE AND MANAGEMENT OF 61 Notification of amount owing.
BUREAUS 62 Mode of service.
63 Obtaining information under false pretences.
42 Management and composition of a Bureau.
64 Publication of list of third party credit information
43 Capital
providers.
44 Criteria for appointment of directors.
65 Public education.
45 Disqualification of officers.
66 Compliance with guidelines, rules or directives.
46 Suitability test.
67 Penalties.
68 Repeals.
PART VI – DISSOLUTION AND LIQUIDATION
69 Savings.
47 Dissolution and winding up.
48 Central Bank approval for voluntary liquidation. SCHEDULES
49 Notification to the Central Bank.
50 Forwarding of data to Central Bank. FIRST SCHEDULE — Application Form for a Licence to
carry out the Bureau Business.
51 Notification to institutions and Bureaus.
SECOND SCHEDULE — Personal Declaration Form for
individuals proposed to become significant shareholders,
PART VII—POWERS OF THE CENTRAL BANK
directors or senior officers of a Bureau.
52 Powers of the Central Bank.
53 Inspection of Bureaus. THIRD SCHEDULE —Statutory Declaration.
54 Ownership of information. FOURTH SCHEDULE — Fees
55 Periodic returns.
56 Audited report
C E N T R A L B A N K O F K E N YA
CREDIT REFERENCE BUREAU REGULATIONS, 2019
3THE BANKING ACT
(Cap. 488)
THE MICROFINANCE ACT
(No. 19 of 2006)
THE SACCO SOCIETIES ACT
(No. 14 of 2008)
IN EXERCISE of the powers conferred by sections 31(3) and (4) and 55(1) of the Banking Act, sections 34(4) and (5) and 48(2)
of the Microfinance Act, 2006, and section 54 of the Sacco Societies Act the Cabinet Secretary for The National Treasury
makes the following Regulations – prescribed by the Central Bank;
THE CREDIT REFERENCE “amendment notice” means a written notice from an
BUREAU REGULATIONS, 2019 institution advising a Bureau of an amendment to
credit information previously incorrectly reported to
a Bureau by that institution;
PART I—PRELIMINARY
Citation and commencement “bank’ means a bank licensed under the Banking Act;
1. These Regulations may be cited as the Credit “Bureau” means a credit reference bureau licensed
Reference Bureau Regulations, 2019. under these Regulations to prepare or provide credit
reports to credit information recipients based on data
Interpretation maintained by the Bureau and to carry out such other
2. In these Regulations, unless the context otherwise activities as are authorised under these Regulations;
requires–
“Cabinet Secretary” means the Cabinet Secretary for
“Act” means the Banking Act, the Microfinance Act, the time being responsible for matters relating to
2006 and the Sacco Societies Act; finance;
“adverse action notice” means a notice issued by “Central Bank” means Central Bank of Kenya
an institution to a customer conveying denial or established under section 3 of the Central Bank of
cancellation of, an increase in any charge for, or a Kenya Act;
reduction or other adverse or unfavourable change in
the terms of coverage or amount of, any loan, existing “credit information” means any positive or negative
or applied for, or any other action or determination information bearing on an individual’s or entity’s
adversely affecting the customer, based on customer credit worthiness, credit standing, credit capacity, to
information obtained from a Bureau; the history or profile of an individual or entity with
regard to credit, assets, and any financial obligations;
“agent” means an entity contracted by a Bureau and
approved by the Central Bank to provide the services “credit information provider” means a person other
on behalf of the Bureau, in such manner as may be than a subscriber who furnishes credit information to
a Bureau;
4 C E N T R A L B A N K O F K E N YA
CREDIT REFERENCE BUREAU REGULATIONS, 2019“credit report” means an electronic, written or other of an institution;
communication of any information by a credit reference “microfinance bank” means a microfinance bank
bureau, relating to a person’s creditworthiness, credit licensed under the Microfinance Act, 2006;
standing, credit capacity, character or general reputation
which is used or collected to serve as a factor in “negative information” means any adverse customer
establishing that person’s eligibility for credit or other information relating to a customer which includes-
service or product provided by an institution or for such
other purposes as may be permitted or required by law (a) non-performing loan or credit default or late
or contract; payment on all types of facilities or claims;
“credit score” means a numerical expression of a (b) dishonour of, other than for technical reasons,
customer’s creditworthiness contained in a credit report; cheques meant for settlement of credits in favour of
institutions;
“customer” means any consumer of services or products
who has a formal engagement to receive services or (c) accounts compulsorily closed other than for
products on agreed terms and conditions from an administrative reasons;
institution licensed under the Act or a third party and
includes a person who seeks to open an account with an (d) proven cases of frauds and forgeries;
institution;
(e) proven cases of cheque kiting;
“customer information” means credit information, or
any other positive or negative information provided by (f) false declarations and statements;
a customer or obtained from an institution, a third party,
or public record information, which may be exchanged (g) receiverships, bankruptcies and liquidations;
pursuant to these Regulations;
(h) tendering of false securities; and
“database” means a set of customer information
collected, managed and disseminated by a Bureau; (i) misapplication of borrowed funds.
“day” means a calendar day; “non-executive director” means a director who is not
engaged in the day to day management of a Bureau;
“delinquent loan” means any loan which the principal or
interest remains unpaid after the due date in accordance “non-performing loan” means—
with the provisions of the Sacco Societies Act and
the Sacco Societies (Deposit-Taking Sacco Business) (a) pursuant to the Banking Act and Prudential
Regulations, 2010; Guidelines, 2013—
“director” means a member of the board of directors of (i) in respect of, loan accounts and other credit
a Bureau; extensions having pre-established repayment
programs, when principal or interest is due
“institution” for the purposes of these Regulations, and unpaid for ninety days or more or interest
means an institution within the meaning of section 2 of payments for ninety days or more have been re-
the Banking Act, section 2 of the Microfinance Act, 2006 financed or rolled-over into a new loan;
and a sacco society as defined in the Sacco Societies Act;
(ii) in respect of, current accounts ,overdrafts,
“loan” means direct, indirect and contingent obligations and other credit extensions not having pre-
incurred by an individual or entity with third parties and established repayment programs, when the
includes any , credit, discount, advance, overdraft, export balance exceeds the customers approved limit
bills purchased, other bills receivable or purchased, for more than ninety consecutive days, the
import bills, customers’ liability on off balance sheet customers borrowing line has expired for more
items or any other credit facility extended to a customer
C E N T R A L B A N K O F K E N YA
CREDIT REFERENCE BUREAU REGULATIONS, 2019
5than ninety days or interest is due and unpaid “performing loan” means any loan which has not been
for more than ninety days; or classified as a non-performing loan under the Banking
(iii) in respect of, off balance sheet items, when Act and the Microfinance Act;
the off balance sheet item crystallize and the
customer’s account is debited and the principal “place of business” means any premises including the
and interest is subsequently unpaid for ninety head office, branch, agency or such other premises as
days or more. may be approved by the Central Bank, at which a Bureau
conducts its business;
(b) pursuant to the Microfinance Act, 2006 and the
Microfinance (Depositing Taking Microfinance “positive information” means any information on
Institutions) Regulations, 2008 a credit facility that is performing loan or other credit;
not generating income and the principal or interest “positive information” means any information on
is due and unpaid for, more than thirty days and performing loan or other credit;
includes a loan or credit facility classified either as
substandard, doubtful or loss;
“regulator or supervisory authority” means an agency
(c) Pursuant to the Sacco Societies Act and the responsible for supervising institutions or credit
Sacco Societies (Deposit-Taking Sacco Business) reference bureaus;
Regulations, 2010 means a delinquent loan;
“Sacco society” means a savings and credit co-operative
“notice of change” means a written notice sent by a society registered under the Co-operative Societies Act
Bureau to an institution concerning a significant change and licenced and regulated under the Sacco Societies
to customer information that had previously been Act;
obtained by the institution from the Bureau for a “significant shareholder” means a person other than
period not exceeding twelve months prior to the date of the Government or a public entity, who holds directly or
the notice of change; indirectly or otherwise has a beneficial interest in more
than ten per cent of the share capital of a Bureau or if it
“notice of resolution” means a written notice sent from is proposed that such a person shall hold or have such a
an institution to a Bureau, advising the results of an beneficial interest;
investigation the institution has made into customer
information previously reported to the Bureau by the “subscriber” means an institution licensed under the
institution where the customer has disputed the accuracy Banking Act, the Microfinance Act or the Sacco Societies
of information reported; Act and which has subscribed to receive customer
information from a Bureau.
“officer” means any person who takes part in the general
management of a Bureau and includes a director, “summary of rights” means a key facts document
the secretary to the board, the chief executive officer, prepared by a Bureau pursuant to Regulation 29 and
deputy chief executive officer, chief financial officer, chief which sets out a customer’s rights relating to credit
information technology officer, chief internal auditor, or report”.
manager of a significant unit of the Bureau or a person
with a similar level of seniority, position or responsibility;
6 C E N T R A L B A N K O F K E N YA
CREDIT REFERENCE BUREAU REGULATIONS, 2019PART II—ESTABLISHMENT AND LICENSING OF (b) feasibility study by the applicant, showing the
A BUREAU nature of the planned business, organizational
structure and internal control systems and
Qualification and prohibition to operate monitoring procedures of the company,
without a licence covering, the following aspects—
3. (1) A person shall not establish or operate a bureau
business in Kenya or otherwise hold himself out to (i) market analysis;
the public as engaging in any Bureau business for the (ii) ownership structure;
benefit of institutions licensed under the Act unless (iii) governance and management structure;
such person is— (iv) business plan;
(v) business continuity plan; and
(a) established and incorporated as a limited (vi) operation manuals that ensure the
liability company under the Companies Act; accuracy of the information contained in
and its database as well as the timely updating
(b) licensed under these Regulations; or of the information, through signing
(c) is an agent of a Bureau. of contracts with information sources
which must be known to and approved
(2) A person who contravenes the provisions of by the Central Bank and the manuals
this regulation commits an offence and shall, must include query module manual
on conviction, be liable to a fine of five hundred of the applicant, data loading module
thousand shillings or to imprisonment for a term of manual, source quality control manual,
two years or to both. maintenance module manual, security
module manual, operating manual, user
manual, data privacy manual and manual
Application for a licence for procedures for handling complaints;
4. (1) A person seeking to obtain a licence to conduct
Bureau business shall apply to the Central Bank for (c) sworn declarations of proposed directors,
approval of the name. officers and significant shareholders in the
forms set out in the Second Schedule;
(2) The approval under sub-regulation (1) shall lapse
where the person does not obtain a licence within (d) management processes, including—
twelve months of such approval.
(i) development schedule of the software
(3) An application for a licence to conduct Bureau
required for operation;
business shall be made to the Central Bank in the
(ii) characteristics of products and services to
form set out in the First Schedule.
be provided to subscribers;
(4) The applicant under sub-regulation (3), shall (iii) service provision policies and procedures
furnish the following information and provide manuals; and
supporting documents and any such other (iv) proposed security and control measures
information that the Bureau considers necessary or aimed at preventing misuse or improper
as may be required by the Central Bank from time to management of information;
time-
(e) overview of operations including the description
(a) certified copies of the applicant’s certificate of systems and the design of the data collection
of incorporation and its memorandum and including the unique identification system for
articles of association; individuals and enterprises that is adequate to
ease the collection of data and handling of the
database;
C E N T R A L B A N K O F K E N YA
CREDIT REFERENCE BUREAU REGULATIONS, 2019
7(f) a description of the applicant’s premises and (e) availability of human, financial and operational
their suitability for customer service and the resources necessary for effective and efficient
description of the security measures to be conduct of Bureau business;
adopted;
(g) the proposed fees and cost structure of products (f) the existence of adequate infrastructure for the
and services; collection of information and delivery of credit
(h) audited financial statements for the last three reports;
years where applicable;
(g) ability of the applicant to keep customer
(i) a prototype of the final product that information confidential; and
demonstrates the principal features and
functions of the system; and (h) ability of the applicant to conduct proper and
sufficient due diligence and identity verification
(j) a banker’s cheque of ten thousand shillings on any person requesting for credit information.
payable to the Central Bank, being a non-
refundable application processing fee. Inspection of premises and systems
6. (1) An applicant shall submit to the Central Bank
Evaluation of application
an independent security audit report prepared by
5. (1) On receipt of an application for a Bureau licence, a registered audit firm giving expert opinion on
the Central Bank shall within fourteen days from the the suitability of the premises, adequacy of the
date of receipt of the application assess the accuracy management information systems, and any other
of the information submitted and shall acknowledge aspects that maybe considered relevant with respect
receipt of the application and notify the applicant of to Bureau operations.
any missing information which ought to have been
submitted by the applicant. (2) The Central Bank shall carry out on-site
inspection of the applicant’s premises to determine
(2) When evaluating an application for a licence to the adequacy of the applicant’s safety and security
operate a Bureau business in Kenya, the Central Bank system and to confirm-
shall take into consideration all relevant matters
including the following- (a) suitability of the premises for Bureau operations;
(a) the background, reputation, integrity, (b) adequacy of the management information
experience and capacity of the proposed system, administrative and operational
significant shareholders, directors and senior processes and the internal control systems;
officers of the applicant as evidenced by
amongst others, the curriculum vitae and (c) security of information; and
professional records of the proposed persons;
(d) separation of the proposed Bureau business
(b) the business plan of the applicant, including from other business carried out by the applicant
plans to undertake national coverage, the roll or its associates.
out plan and a mechanism to integrate, gather,
input, update and validate data; Issuance of licence
7. (1) Where the Central Bank is satisfied that the
(c) the design of data collection for customer
applicant meets the requirements; it shall issue a
information and flexibility in structuring the
letter of intent to the applicant, which shall act as an
information in accordance with the Act and
interim approval of the application.
these Regulations or other guidelines that may
be issued by the Central Bank; (2) Where an applicant is issued with a letter of intent,
the Central Bank shall notify the applicant to submit
(d) the adequacy of the applicant’s capital structure to the Central Bank-
in relation to the business;
8 C E N T R A L B A N K O F K E N YA
CREDIT REFERENCE BUREAU REGULATIONS, 2019(a) a bankers cheque for one hundred thousand
shillings payable to the Central Bank being Bank guarantee
licence fee;
8. (1) Where a Bureau is licensed under these Regulations,
it shall within thirty days of being granted the licence,
(b) a statutory declaration in the form set out in the
submit to the Central Bank an irrevocable bank
Third Schedule sworn under oath by the chief
guarantee of one million shillings from a bank or
executive officer of the applicant confirming
a microfinance bank and in such form as may be
that the applicant will adhere to the provisions
specified by the Central Bank.
of these Regulations and in particular, the
applicant will not disclose to any person (2) Where a Bureau is required to pay a penalty under
any information obtained pursuant to the these Regulations and fails to do so within the time
applicant’s obligations under these Regulations specified by the Central Bank, the Central Bank may
except as provided therein. recover the amount due on the penalty from the bank
guarantee issued under sub-regulation (1).
(3) Where the Central Bank is satisfied that the
requirements of sub-regulation (2) have been fully (3) Where a penalty has been recovered from the bank
complied with, the Central Bank shall issue a licence guarantee in accordance with sub-regulation (2),
to the applicant permitting it to carry out Bureau the Bureau shall within thirty days of being notified,
business. furnish the Central Bank with a new irrevocable bank
guarantee of one million shillings, in a form specified
(4) Where the Central Bank is dissatisfied with the by the Central Bank.
information submitted by the applicant, the Central
Bank may request for additional information before (4) Where a Bureau fails to comply with sub-regulation
making a final determination. (1) and (3), its licence shall be revoked.
(5) The Central Bank may endorse a licence granted Refusal to issue a licence
under this regulation with such conditions as the
9. (1) The Central Bank may, where the requirements of
Central Bank considers necessary and may from time
issuance of a licence as provided in these Regulations
to time add, vary or substitute such conditions as the
are not met, decline to grant a licence to an applicant.
Central Bank considers appropriate.
(6) The Central Bank shall determine an application (2) A person aggrieved by the decision of Central Bank
for a licence within ninety days from the date of receipt not to grant a licence under sub-regulation (1) may,
of information required under these Regulations or as within twenty-one days from the date of the Central
may be requested by the Central Bank: Bank decision, appeal to the Cabinet Secretary for
review of the decision.
Provided that a licence shall not be granted if the
applicant has not fully set up its physical structure (3) The Cabinet Secretary shall, while considering
including management information system. an appeal under sub-regulation (2), consider the
material in the administrative record developed by
the Central Bank and may invite the Central Bank
or the applicant or both the Central Bank and the
(7) Where the Central Bank declines to grant a
applicant to make any presentations with respect to
licence, it shall state the grounds of refusal and where
the appeal.
applicable may advise the applicant of the necessary
action which the applicant needs to take before
resubmitting a fresh application for a licence.
C E N T R A L B A N K O F K E N YA
CREDIT REFERENCE BUREAU REGULATIONS, 2019
9(4) The Cabinet Secretary may reverse the decision of (g) has violated the provisions of any applicable
the Central Bank if it establishes that— law or these Regulations or is insolvent or
unable to effectively conduct its operations
(a) the Central Bank failed to follow the laid down or through its activities the public trust has
procedure; been compromised;
(b) the Central Bank’s decision was contrary to law; (h) has failed to comply with any material
(c) there was no factual basis for the Central Bank’s obligation imposed on it by or under these
decision; or Regulations;
(d) based on a review of the record, the Central Bank (i) has engaged in activities either restricted or
committed a manifest error in its assessment of not permitted under these Regulations;
facts, or abused its discretion. (j) is unable or has consistently failed to protect
the confidentiality of data or information it
(5) The Central Bank shall be bound by the decision collects;
of the Cabinet Secretary. (k) has, without the consent of the Central Bank,
amalgamated with another entity or sold or
otherwise transferred its business, assets or
Validity of the licence
liabilities to another entity;
10. A licence issued under these Regulations shall (l) a winding-up order has been made against it
remain valid unless it is revoked. or a resolution for voluntary winding up has
been passed;
Notification of licenced Bureaus (m) has been engaged in using the information
11. The Central Bank shall, within thirty days from collected, for any purpose which is not
the date a licence has been issued to a Bureau, permitted by these Regulations; or
by notice in the Kenya Gazette, notify members of (n) fails to pay the annual licence fee within
the public of the name of the Bureau and the date ninety days after the anniversary date.
the licence was issued.
(2) The Central Bank shall not revoke or suspend
Revocation or suspension of licence the licence of a Bureau unless the Bureau has been
given an opportunity to make representations to
12. (1) The Central Bank may suspend or revoke a
the Central Bank on why the licence should not
licence issued to a Bureau if the Bureau—
be revoked or suspended and the Central Bank
(a) does not commence business within twelve shall take into consideration the representations
months from the date the licence was issued; made by the Bureau in its decision on the matter.
(b) has ceased or suspended operations for a
(3) The Central Bank may, in lieu of revoking or
period of three months;
suspending the licence, require the Bureau to
(c) obtained the licence on the premise on
take such measures to regularise the breach or
wrong, false, misleading information or
violation within such time as the Central Bank
concealment of material information which,
may specify and may in addition impose such
if known at the time of evaluation of the
monetary penalty or other sanctions as it may
application for the licence, the Bureau would
consider necessary.
not have been granted a licence;
(d) applies to the Central Bank for the revocation (4) The Central Bank shall, upon revoking or
or suspension of the licence where good suspending a licence under sub regulation (1),
cause has been shown; within seven days inform the licencee of the
(e) has ceased to meet the licensing and revocation or suspension.
operational requirements prescribed in
these Regulations; (5) The Central Bank shall, upon revocation
(f) has failed to comply with any condition of of the licence of a Bureau, take over control of
the licence; the business of the licencee to safeguard the
information in its possession and facilitate
winding up of its Bureau business.
10 C E N T R A L B A N K O F K E N YA
CREDIT REFERENCE BUREAU REGULATIONS, 2019(6) The Bureau shall hand over the entire (5) Where a Bureau fails to pay the fee within
database in a readable format as the Central ninety days after the anniversary date as
Bank may specify and shall thereafter erase to prescribed in sub-regulation (3), its licence shall
the satisfaction of the Central Bank, all data in its be revoked.
database.
(6) Where a Bureau is granted a licence by the
(7) Where the licence is revoked, the holder of the Central Bank—
licence shall, within seven days from the date of
service of the notice of revocation, surrender the (a) there shall be no refund of any licence fee
licence to Central Bank and shall forthwith cease paid to the Central Bank in the event the
to carry out Bureau business or any other activity licence is cancelled or revoked or a Bureau
authorized under these Regulations. ceases to carry on business at any time
before the end of the year;
(8) A person who fails to comply with sub-
regulation (7) commits an offence and shall, on (b) there shall be no proration of the licence
conviction, be liable to a fine not exceeding five fee paid in the course of the year for the
hundred thousand shillings or to imprisonment commencement of Bureau business:
for a term not exceeding two years or to both.
Provided that for Bureaus which were in existence at
(9) The Central Bank shall, by notice in the the date of commencement of these Regulations, the
Gazette, notify all institutions, other Bureaus and annual licence fees already paid shall be prorated up
the public whenever a Bureau’s licence has been to 31st December 2013 and the Bureaus shall only pay
suspended or revoked and further dealings with the balance of the annual licence fees for the period
the Bureau for purposes of these Regulations commencing from 1st January 2014 to 31st December
shall cease. 2014.
Annual licence fee
Non-transferability of licences
13. (1) In this regulation, “anniversary date” means
14. (1) A person shall not transfer a licence granted to
the end of a calendar year running from 1st
him by the Central Bank to another person.
January to 31st December of each year.
(2) A person who contravenes sub-regulation
(2) A Bureau shall be required to pay to the Central
(1) commits an offence and shall be liable upon
Bank an annual licence fee of one hundred
conviction to a penalty of five hundred thousand
thousand shillings.
shillings.
(3) The annual licence fee prescribed in sub-
regulation (1) shall be paid before the anniversary
date.
(4) A Bureau that fails to pay the annual licence
fee before the anniversary date shall pay double
the licence fee, if payment is made within ninety
days after the anniversary date.
C E N T R A L B A N K O F K E N YA
CREDIT REFERENCE BUREAU REGULATIONS, 2019
11PART III- OPERATIONS OF BUREAUS Use of agents
Activities of the Bureau 16. (1) A Bureau may contract an agent for the
following purposes—
15. (1) A Bureau licensed under these Regulations
shall engage in the following activities- (a) delivery of credit reports to requesting
persons as may be authorised under these
(a) obtain and receive customer information;
Regulations;
(b) store, manage, evaluate, update and
(b) public sensitization of customers,
disseminate the customer information
institutions, and other credit information
to subscribers in accordance with these
providers;
Regulations;
(c) receiving and channeling complaints;
(c) compile and maintain database and
(d) other purposes as may be approved by the
generate reports from customer information
Central Bank upon application by a Bureau.
database; and
(d) develop a credit score for every person whose
(2) A Bureau shall not contract an agent unless
credit information has been submitted to a
the proposed agent has been approved by the
Bureau;
Central Bank.
(2) A Bureau licensed under these Regulations (3) An application for approval of an agent shall
may engage in the following additional be accompanied by a report on the suitability
activities— assessment of the proposed agent, the services
to be rendered by the proposed agent and
(a) sell to institutions specialized literature and
application fees set out in the Fourth Schedule.
other information material related to its
activities; (4) A Bureau shall, at least two months before
(b) carry out on its own or with another person the end of the current year, apply to the Central
as may be approved by the Central Bank, Bank for the renewal of approval of its agents and
market and statistical research relating to shall submit to the Central Bank a list of its agents
matters set out under these Regulations; whose approvals should be renewed together
(c) conduct Know Your Customer (KYC) due with annual renewal fees for each agent as set
diligence on behalf of another person and out in the Fourth Schedule.
(d) carry out any other activity as may be
approved by the Central Bank from time to (5) A person is not qualified to be appointed as an
time in accordance with the Act. agent if that person-
(3) A Bureau shall not engage in activities other (a) is a minor or is of unsound mind;
than those specified in these Regulations or as (b) has been convicted of an offence involving
approved by the Central Bank in accordance with theft, fraud, forgery, causing financial loss or
the Act. perjury;
(c) has not been vetted in such manner as may
(4) Where a Bureau fails to comply with sub- be prescribed;
regulation (3) it shall be liable to pay a penalty (d) has been removed from an office on account
of five hundred thousand shillings and in the of misconduct, abuse of office, corruption or
case of continued failure, it shall be liable to an incompetence in the preceding ten years; or
additional penalty of ten thousand shillings for (e) for such other reasons as may be prescribed
each day on which such failure continues. in the Guidelines.
12 C E N T R A L B A N K O F K E N YA
CREDIT REFERENCE BUREAU REGULATIONS, 2019(6) A Bureau shall ensure that no agent has (f) passing of a shareholders resolution to
unlimited access to the credit information in the voluntarily wind up the Bureau;
database of the Bureau and shall only permit (g) introduction of new products or services;
access in respect of a customer whose credit (h) fees payable by customers; and
information has been requested or is the subject (i) arrangement or agreement—
of a lawful transaction under these Regulations. (i) for the sale, transfer or disposal of the
shares or business of the Bureau; or
(7) A Bureau shall carry out a suitability a merger, amalgamation, acquisition,
assessment on the capability of an agent and take over or assignment; or
shall satisfy itself as to the— (ii) affecting the voting power, management
or other matters which may result in a
(a) existence of adequate infrastructure for the
change in the control or management
collection of information and delivery of
of the Bureau.
credit reports;
(b) ability of the agent to keep customer
information confidential; and Nature of information to be shared
(c) ability to conduct proper and sufficient due 18. (1) Customer information which shall be shared
diligence and identity verification on any or exchanged pursuant to these Regulations
person requesting for credit information. shall include both positive and negative credit
information and may include details specified in
(8) An agent shall be contracted on a non- sub-regulation (2).
exclusive basis.
(2) The nature of customer information to be
(9) The Central Bank may prescribe guidelines for shared pursuant to sub regulation (1) shall
the contracting and operations of agents. include-
Actions requiring prior approval of Central (a) the customer’s identity, including-
Bank (i) in the case of a natural person his
name, date of birth, national identity
17. (1) A Bureau shall seek and obtain prior written
card number, personal identification
approval of the Central Bank for the following
number, passport number, driving
activities -
licence number, past and current
addresses and other contact details and
(a) appointment of directors and officers of the related matters;
Bureau; (ii) in the case of a customer who is
(b) acquisition of ten per cent or more of the not a natural person, the entity’s
shares of a Bureau by any person except name, registration number, personal
as may be provided otherwise under these identification number, names of
Regulations; directors, shareholders holding more
(c) opening, relocation or closure of a place than ten per cent of its shares or
of business in or outside Kenya and shall partners, trustees or officials, past and
notify the Central Bank three months prior current addresses and other contact
to permanently closing its place of business. details and related matters;
Temporary closures shall be notified to the
Central Bank within seven days prior to the (b) the customer’s credit status including the
date of closure or on such short notice as nature and amounts of loans or advances
the circumstances of the case may render and other credit facilities granted, amounts
necessary; outstanding thereof, credit application and
(d) appointment of agents; related matters;
(e) changes in the memorandum and articles of
association;
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CREDIT REFERENCE BUREAU REGULATIONS, 2019
13(c) the nature and details of security or for any loss or damage caused or is likely to be
securities taken or proposed to be taken caused by anything which is done or intended
by an institution as security for the loans, to be done in good faith in pursuance of these
advances and other credit facilities; Regulations or guidelines issued hereunder.
(d) details of payment of credit facilities or (2) Nothing contained in sub-regulation (1) shall
default in payment by the customer, debt affect the right of any person to make a claim
restructuring and actions taken by the against a Bureau, an institution or chairperson,
institution to recover unpaid amounts director, member, auditor, adviser, officer or
including realization of securities, legal other employee or agent of such Bureau or
proceedings and related matters; institution, as the case may be, in respect of loss
or damage caused to him on account of any such
(e) identity details of the shareholders, directors, disclosure made by anyone of them and which
partners or officials of a corporate entity or is unauthorised or fraudulent or contrary to
unincorporated entity which has defaulted provisions of these Regulations, guidelines or any
in repaying its credit facility. other law to which these Regulations relate.
(3) A person who has been made liable for the
(3) A Bureau shall include a customer’s credit
acts or omissions of another person may seek
score in every credit report.
indemnity from the person who was at fault.
(4) Customer information shall be furnished using
Prohibited information
a standard format established by agreement
of the institutions furnishing information and 21. (1) A Bureau shall not include in its database or a
licenced Bureaus, or otherwise issued by the credit report personal information of a customer
Central Bank. relating to race, belief, colour, ethnic origin,
religion, political affiliation, sexual orientation,
(5) An institution or third party credit information physical and mental handicaps, state of health or
provider submitting credit information to medical information.
a Bureau shall at all times ensure that the
information is complete and accurate. (2) Despite sub regulation (1), any information
relating to Sharia compliant products shall not
(6) An institution or third party credit information be considered to contravene this Regulation.
provider which submits incomplete or inaccurate
information to a Bureau shall be liable to such Form of consent
penalty as the Central Bank may impose.
22. (1) Where the consent of a customer is required
Identification details under these Regulations for the submission or
sharing of credit information, such consent may be
19. Credit information of a person shall be submitted obtained by the customer signing any document
to Bureaus with all such identification details as giving express consent or authorisation for the
would enable a Bureau to link a customer to all sharing of credit information.
its transactions with any other person.
(2) The documents under sub-regulation (1)
Protection from liability may include, account opening documents, loan
20. (1) A suit, prosecution or other legal proceedings application forms, loan agreements or any other
shall not lie against the Central Bank, Bureau, agreement document between an institution
an institution or chairperson, director, member, and a customer or a customer and a third party
auditor, adviser, officer or other employee or credit information provider or by any other
agent of such Bureau or institution or any other documentary means as may be convenient or
person authorised under these Regulations to agreeable to the parties.
submit, receive, use or share credit information,
14 C E N T R A L B A N K O F K E N YA
CREDIT REFERENCE BUREAU REGULATIONS, 2019(3) A customer may give consent through (g) court registries in respect of information
oral, print or electronic means, subject to the on judgments on debts, insolvency or
satisfaction of the Bureau or institution as to the bankruptcy proceedings or winding up
authenticity of the electronic consent. orders;
(h) registrar of names;
Conditions and form of disclosure to customers (i) registrar of persons;
23. (1) A Bureau or agent shall before making a (j) other relevant public bodies.
disclosure require a customer to identify himself.
(2) An application for the approval of a third party
(2) A disclosure by a Bureau or agent may be made credit information provider shall be accompanied
in writing, in person, during normal business with application fees set out in the Fourth
hours, and on reasonable notice, by telephone, Schedule together with a suitability assessment
e-mail or by other electronic means, if available report detailing the information set out in sub-
to the Bureau or agent, as the requesting person regulation (4) of this Regulation.
may choose.
(3) A government agency, public entities and
(3) The customer may be permitted to be other credit information providers may enter
accompanied by one other person of his choice, into contracts with Bureaus for the provision of
who shall furnish reasonable identification before information and such contract shall specify—
he is allowed on the instructions of the customer
to have access to the customer information. (a) the conditions for the provision of
information;
(4) A Bureau or agent shall require the customer (b) the obligation to furnish accurate and
to furnish a written or oral authority granting updated information;
permission to the Bureau or agent to discuss the (c) the obligation to promptly correct any
customer’s information whenever a third party is information submitted to the Bureau which
present and where the third party is authorised has been established to be inaccurate,
to act on behalf of the customer in respect of the overtaken by events, false, misleading or
customer’s information. erroneous in any form;
(d) details on data to be provided;
(5) A Bureau shall provide trained personnel (e) the manner and acceptable form through
to explain to the customer any information which the information may be submitted to
furnished to him where such explanation is the Bureaus.
needed by the customer.
(4) A Bureau shall before engaging a third
Other sources of information
party credit information provider carry out due
24. (1) A Bureau may, with the approval of the diligence and suitability assessment of the third
Central Bank, collect, receive, collate, compile party credit information provider and shall
and disseminate information relating to a establish-
customer which is obtained from a third party
or is ordinarily available to the public, including (a) the nature and character of its ownership
information from the following public sources— and management;
(b) the nature of its business and whether it is
(a) companies registry; subject to any legal or regulatory framework;
(b) registrar of business entities; (c) the soundness of its information
(c) business and trade licensing authorities; management system in relation to
(d) land registries; generation, storage and transmission of
(e) tax authorities; customer information;
(f) county government entities; (d) the accuracy and integrity of its records;
(e) the credibility of credit information of every
person it deals with;
C E N T R A L B A N K O F K E N YA
CREDIT REFERENCE BUREAU REGULATIONS, 2019
15(f) whether its customers have willingly and (b) the Bureau shall, where such information
consciously consented to the sharing of their relates to any court proceeding of a civil
credit information; or criminal nature or any public record,
(g) whether its customers are fully aware of the verify the accuracy and authenticity of the
terms and conditions of their relationships information not more than twenty-one days
with the third party credit information before the date on which the information is
providers especially on credit information included in any report.
sharing; and
(h) such other matter as the Central Bank may (2) A Bureau shall periodically report to the
specify. Central Bank the source and details of the public
data included in its reports together with the
(5) A Bureau shall not contract a third party credit process of verification carried out to authenticate
information provider whose customer’s financial the veracity and truthfulness of such data.
or credit information is occasionally based on
estimates or is subject to assessment before (3) Where a Bureau has included in any report
ascertaining the true amount. information from public domain data, and the
Central Bank is satisfied that a Bureau did not
(6) A third party credit information provider shall take all reasonable measures to verify the veracity,
not furnish any credit information of a customer authenticity, truthfulness or accuracy of the data,
to a Bureau or its agent except with the prior the Central Bank shall direct the Bureau to delete
written consent of the customer. the information from its database and may in
addition impose a penalty not exceeding five
(7) Where a third party credit information hundred thousand shillings for each violation.
provider is approved by the Central Bank to share
credit information of its customers with a Bureau,
the credit information shall be shared with all Duty to provide accurate information
licensed Bureaus and may be submitted to a
26. (1) A credit information provider furnishing
central hub where a central hub is in use.
negative information to a Bureau regarding
(8) The Central Bank may, if it considers it credit extended to a customer or arising from a
necessary, prohibit a Bureau from receiving credit product or service rendered to a customer shall,
information or disseminating credit information in writing or through electronic means, issue
from any third party credit information provider to the customer a notice of intention to submit
or a public source. the negative information within thirty days
before submitting of the negative information
(9) A third party credit information provider shall to a Bureau or within such shorter period as the
be subject to such industry Code of Conduct as contract between the credit information provider
may be approved by the Central Bank. and the customer may provide.
(2) A credit information provider need not give
Use of public data by Bureaus a customer a pre-listing notice of his positive
information.
25. (1) A Bureau may consult public and non-public
sources of information and include such public (3) A credit information provider shall not furnish
information in any report issued under these any information relating to a customer to any
Regulations provided that before including such Bureau if the credit information provider knows
information— or has reasonable cause to believe that the
information is inaccurate.
(a) the Bureau shall follow reasonable
procedures to obtain confirmation of the
accuracy and authenticity of the information (4) A credit information provider shall not furnish
from a source that has independent and
direct knowledge of the information; and
16 C E N T R A L B A N K O F K E N YA
CREDIT REFERENCE BUREAU REGULATIONS, 2019information relating to a customer to any Bureau if recklessly or negligently submits inaccurate
the credit information provider has been notified information to a Bureau or which does not
by the customer, at the address specified by the adequately address customers’ complaints on
credit information provider for such notices, that the inaccuracy of information submitted or to
the specific information is inaccurate. be submitted to a Bureau shall be barred by
the Central Bank or the concerned Bureau from
(5) Despite sub-regulation (4), the credit submitting information to the Bureau or any
information provider may submit the credit other Bureau as the case may be.
information to a Bureau once it has addressed
the customer’s concern on the inaccuracy of
the credit information either by re-affirming the Restrictions on the use of customer information
accuracy of the information to the customer or
27. (1) A Bureau shall protect the confidentiality of
rectifying the inaccuracy.
customer information received in terms of these
(6) A notice issued under sub-regulation (4) Regulations and shall only report or release such
shall explain the basis of the inaccuracy of the customer information-
information and shall be in writing and where
(a) to the customer concerned;
the notice is oral, the credit information provider
(b) to the Central Bank;
shall reduce it into writing.
(c) to a requesting subscriber;
(7) Where the credit information provider has (d) to a third party as authorized by the customer
been notified of any inaccuracy in the credit concerned; or
information and where there is reasonable (e) as required by law.
cause to believe that the information may not
be accurate, the credit information provider shall (2) Except as is otherwise provided for under sub-
inform all the Bureaus to which the information regulation (1), a director, member, officer or other
has already been submitted of this fact within five employee or agent employed in the business of
days of the notification and shall within fourteen a Bureau or a subscriber shall not disclose any
days carry out investigations and inform the information to any person and this obligation
Bureaus of the outcome of the investigation. shall continue to apply even after termination
of tenure, employment or relationship with the
(8) A credit information provider has a duty to- Bureau or subscriber.
(a) correct any inaccurate or erroneous (3) A director, member, officer or other employee
information when the fact of inaccurate or agent of a Bureau or subscriber who unlawfully
or erroneous information comes to their or without the authority of the Bureau discloses
knowledge or attention; and any credit information to an unauthorised
(b) inform the Bureaus within five days from person commits an offence and shall be liable,
the date of learning of the inaccurate or upon conviction, to imprisonment for a term of
erroneous information and on receipt of two years or to a fine of five hundred thousand
such information the Bureau shall update its shillings, or to both.
database within two days of receipt.
(4) The Central Bank may, instead of criminal
(9) A credit information provider who has prosecution under sub-regulation (3), impose
furnished credit information to a Bureau shall, such sanctions against the Bureau, subscriber,
within thirty days from the date the information director, member, officer, other employee or
was furnished to a Bureau, notify the customer agent as the Central Bank may deem fit including
that his credit information has been forwarded to terminating the tenure or services of the director,
the Bureau. member, officer, other employee or agent of the
Bureau.
(10) A credit information provider which intentionally,
C E N T R A L B A N K O F K E N YA
CREDIT REFERENCE BUREAU REGULATIONS, 2019
17Responsibilities of a Bureau (k) promptly expunge from its records any
prescribed customer credit information that,
28. (1) A Bureau shall—
in terms of the Regulations, is not permitted
(a) utilize the information collected solely for to be entered in its records or is required to
the purposes set out in these Regulations; be removed from its records;
(b) ensure that customer information in its (l) issue a report to any person who requires
database is protected against any loss and it for a prescribed purpose or a purpose
shall have in place sufficient and tested back contemplated in these Regulations, upon
up and disaster recovery sites. payment of the Bureau’s fee except where
the Regulation provides that no fee be
(c) take all such steps as are reasonably charged;
necessary to ensure that the customer
information maintained by it is duly (m) not knowingly, recklessly or negligently
protected against any unauthorized provide a report to any person containing
access, use, modification or unauthorized inaccurate information;
disclosure; (n) maintain a complaints resolution
(d) ensure that the customer information mechanism including having in place a
maintained by it is not charged or dispute resolution unit to handle queries or
encumbered for any purpose; complaints and a dedicated telephone line
for contact purposes;
(e) ensure customer information is obtained
from reliable and credible sources which (o) include in every report issued the name
take responsibility for the accuracy, of the institution or third party credit
completeness and timeliness of the information provider which has submitted a
information that is provided to a Bureau; negative credit information on any person;
(f) observe, through its shareholders, directors, (p) maintain a database which can be searched
officers, employees or agents, a perpetual using either a natural person’s national
duty of confidentiality with regard to the identity card number, passport number
information divulged to them in terms of or Personal Identification Number and
these Regulations; in the case of a corporate entity or any
other unincorporated entity, the Personal
(g) accept without charge the filing of customer Identification Number of the entity and
credit information from the customer the identity card numbers and Personal
concerned for the purpose of correcting or Identification Numbers of their respective
challenging information otherwise held by directors or officials, as the case may be;
that Bureau concerning that customer;
(q) not keep in its database, customer
(h) take reasonable steps to verify the accuracy information which ought not to be in the
of any customer credit information reported database;
to it;
(r) not delete or remove from its database any
(i) retain any customer credit information credit information which ought to remain in
reported to it for the prescribed period, its database;
irrespective of whether that information
reflects positively or negatively on the (s) not issue a credit report that erroneously
consumer; represents the status of credit information of
a customer; and
(j) maintain its records of customer credit
information in a manner that satisfies the (t) analyze information submitted to it and shall
prescribed standards as provided for under establish any existing relationships between
these Regulations; corporate entities, unincorporated entities
and natural persons whose data has been
submitted to a Bureau.
18 C E N T R A L B A N K O F K E N YA
CREDIT REFERENCE BUREAU REGULATIONS, 2019(2) A Bureau shall only release customer (e) the method by which a customer can
information to a subscriber- contact, and obtain a credit report from, a
Bureau without charge; and
(a) that requires customer information to— (f) the right of a customer to refer a dispute to an
(i) evaluate a customer’s application alternative dispute resolution mechanism, a
for credit or other customer-initiated court of law or the Central Bank where he
business transaction; feels that his dispute has not been resolved
(ii) for the recovery of any sum due to the to his satisfaction.
institution;
(iii) for customer account management, (3) A Bureau may publish any other information
fraud detection and prevention, which may be useful to customers.
credit rating, employment evaluation,
tracing owners of unclaimed assets, (4) A Bureau shall –
development of a scoring system,
assessment of a debtor’s books of (a) publicize the availability of the summary of
business; and rights;
(iv) for other purposes that may be (b) conspicuously post on its website and its
approved by the Central Bank; business premises the summary of rights;
and
(b) that has certified to the Bureau that it will use (c) make such summary of rights available to
the customer information for the purpose of customers, on request or as the Bureau may
making a lawful or permitted decision and find necessary to bring to the attention of as
for no other purpose; and many customers as possible.
(c) that has agreed to properly dispose of Subscriber’s obligations in respect of
customer information so that it cannot information obtained from Bureaus
reasonably be read or reconstructed. 30. (1) A subscriber of information from a Bureau
shall not use such information for any purpose
(3) A Bureau which fails or refuses to comply with other than for reaching decisions on transactions
any provision of this Regulation shall be liable to concerning a customer and on matters
a penalty of five hundred thousand shillings. concerning an employee or a potential employee
of the subscriber or for any other purpose as may
be authorised under these Regulations.
Key facts document on the right to obtain and
dispute credit report (2) A subscriber shall not release such information
29. (1) A Bureau shall prepare a summary of the to any third party except as may be required
rights of customers. under any law or to a subscriber’s appointed
agent for the purpose of assisting the subscriber
(2) The summary of the rights prepared under in the recovery of any of its debts.
sub-regulation (1) shall include a description of:-
(3) A subscriber shall ensure that it does not
(a) the right of a customer to obtain a free copy make an enquiry requesting for a credit report
of a credit report from each Bureau; from a Bureau unless such enquiry is made for a
(b) the frequency and circumstances under specified purpose and in respect of a person who
which a customer is entitled to receive a is—
credit report with or without charge;
(c) the right of a customer to dispute information (a) a customer or has applied for credit facilities
in the file of the customer; from such subscriber; or
(d) the right of a customer to obtain a credit (b) an employee or an applicant for employment
score from a Bureau, and a description of by the subscriber.
how the credit score was arrived at;
C E N T R A L B A N K O F K E N YA
CREDIT REFERENCE BUREAU REGULATIONS, 2019
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