Mobile lending apps in Kenya, regulated under the Central Bank of Kenya (Digital Credit Providers) Regulations 2022, may submit negative credit information to CRBs.
These apps, however, must provide borrowers with 30 days’ prior notice before reporting, the same requirement that applies to banks under the CRB Regulations 2020.
Many digital lenders have historically listed borrowers without this notice, a practice courts have deemed unlawful.
Borrowers who were listed without the mandatory notice have grounds to dispute the listing and can file complaints with both the CBK and the ODPC.
Step-by-Step Checking, Disputing, and Clearing
As explained by Muhoro and Gitonga Associates, a Kenyan law firm, the process follows prescribed steps and improves the likelihood of a successful outcome within legal timelines.
The process is as follows:
1. Request Your Free Annual Credit Report
Every person is entitled to one free credit report per year from each licensed CRB -Metropol, Experian, and Creditinfo.
To request your report, contact the CRB by visiting their website, using their USSD code (Metropol: *433; TransUnion: via their website; Creditinfo: via their website), or visiting their office.
Provide your national ID number. The report shows all credit facilities, payment history, and any negative or positive entries.
Further, it is advisable to request reports from all three bureaus, as lenders may report to different CRBs.
2. Identify and Document the Error
Borrowers are advised to review each credit report carefully and identify any inaccurate entries, such as loans never taken, loans already repaid, incorrect amounts, or listings made without prior notice, then gather supporting evidence, such as loan repayment receipts, bank statements, loan clearance letters, or correspondence showing the lender’s acknowledgement of repayment, noting that stronger evidence could lead to faster dispute resolution.
3. Raise the Dispute Formally with the CRB
Submit a written dispute to the CRB that holds the incorrect entry, Metropol, TransUnion, or Creditinfo.
The dispute must identify: the specific entry being disputed; the nature of the error; and the evidence supporting the dispute.
Keep a copy of the dispute submission and confirm receipt by the CRB.
Under Regulation 50(1) of the CRB Regulations 2020, the CRB must acknowledge your dispute and issue a “notice of dispute” to the lender (subscriber) within 5 working days of receiving your written dispute.
4. Monitor the 30-Day Investigation Window
After the CRB issues the notice of dispute to the lender, the lender has 30 days to investigate and respond with a notice of resolution.
During this period, monitor whether the credit bureau marks the disputed entry as “under investigation” in your credit report; this is best practice under the Regulations, though not always consistently applied. Keep all correspondence.
If the 30-day period expires without a response from the lender, the CRB must remove the disputed entry from your report immediately.
Also Read: How to Get a CRB Clearance Certificate Using M-PESA App
5. Review of the Outcome of the Dispute
Within 5 working days of receiving the lender’s notice of resolution (or of the 30-day lapse), the credit bureau must either: correct the entry (if the lender confirms an error); remove the entry (if the lender fails to respond within 30 days or confirms deletion); or maintain the entry with a note of the dispute outcome (if the lender confirms the information is accurate). The credit bureau must notify you of the outcome.
If you are unsatisfied with the outcome, you have two escalation routes.
6. Escalate to the Central Bank of Kenya if Unresolved
If the dispute is not resolved to your satisfaction, whether because the CRB failed to act, the lender failed to respond, or the outcome was incorrect, file a formal complaint with the Central Bank of Kenya (CBK).
The CBK has regulatory oversight of all licensed CRBs and subscribing institutions. A formal CBK complaint puts the bureau and lender on notice that the dispute is being escalated to the regulator and typically accelerates resolution.
Use the CBK’s consumer complaints portal at www.centralbank.go.ke.
7. Complain to the ODPC (Data Protection Route)
If the CRB or lender has failed to correct inaccurate personal data in your credit report, file a data subject complaint with the Office of the Data Protection Commissioner (ODPC) under the Data Protection Act 2019.
Also Read: Step-by-Step Guide on How to Check Your CRB Status Using the M-PESA App
The ODPC can investigate the complaint, require the bureau or lender to correct the data, and impose fines of up to Ksh 5 million or 1% of annual turnover for data protection violations.
This route is particularly effective where the bureau has failed to correct data despite a valid dispute.
8. Pursue Court Action for Damages
Where the wrongful listing has caused measurable harm, loss of a credit facility, loss of employment, loss of business, or reputational damage, consult an advocate about filing a court claim.
Claims for negligence against a lender must be filed within 3 years of the wrongful listing. Claims for defamation must be filed within 12 months.
According to Muhoro and Gitonga Associates, courts have awarded compensation including general damages for emotional distress; special damages for loss of credit facilities and business losses; and, in extreme cases, exemplary damages for reckless or malicious conduct.
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