NCBA Bank is the most hit lender by the recent move by the Central Bank of Kenya (CBK) to remove defaulters from the negative listing on credit reference bureaus (CRBs).
This is after the bank was forced to write off more than KSh. 11 billion owed by M-Shwari and Fuliza borrowers for the past 10 years.
Out of the KSh.30 billion in non-performing loans on digital platforms as of October 2022, Fuliza and M-Shwari accounted for Ksh 22.5 billion and NCBA having the biggest share means they suffer the most.
According to NCBA’s chief finance officer David Abuya, the lender has begun communication with the debtors and will slash half of the money owned to encourage them to repay their loans.
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“Of the Sh15 billion, M-Shwari and Fuliza combined, we are accounting for Sh11 billion of that. The context is important; we are looking as far as back as 10 years against most digital lenders who have existed from the last year,” said Abuya.
‘’We have already instituted this change. We have already completed the reclassification of more than five million M-Shwari and Fuliza customers. The communications to each individual began going out on Wednesday.’’
The CBK sought to have lenders adopt the new framework of delisting the mobile borrowers from CRB with the aim of improving their credit standing.
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