The Banking and Microfinance Act (Credit Reference Bureau) Regulations
Legal Notice 5 of 2014
Repealed
This Legal Notice was repealed on 2020-04-17 by The Banking (Credit Reference Bureau) Regulations, 2020.
This is the version of this Legal Notice as it was from 24 January 2014 to 30 December 2022. Read the version as it was when it was repealed.
The Banking and Microfinance Act (Credit Reference Bureau) Regulations
Related documents
- Is amended by 24th Annual Supplement
- Is repealed by The Banking (Credit Reference Bureau) Regulations, 2020

LAWS OF KENYA
MICROFINANCE ACT
THE BANKING AND MICROFINANCE ACT (CREDIT REFERENCE BUREAU) REGULATIONS
LEGAL NOTICE 5 OF 2014
- Published in Kenya Gazette Vol. CXVI—No. 10 on 24 January 2014
- Commenced on 24 January 2014
- [Revoked by The Banking (Credit Reference Bureau) Regulations, 2020 (Legal Notice 55 of 2020) on 17 April 2020]
Part I – PRELIMINARY
1. Citation and commencement
These Regulations may be cited as the Credit Reference Bureau Regulations, 2013.2. Interpretation
In these Regulations, unless the context otherwise requires—"Act" means the Banking Act, (Cap. 488) and the Microfinance Act, (No. 19 of 2006);"adverse action notice" means a notice issued by an institution to a customer conveying denial or cancellation of, an increase in any charge for, or a reduction or other adverse or unfavourable change in the terms of coverage or amount of, any loan, existing or applied for, or any other action or determination adversely affecting the customer, based on customer information obtained from a Bureau;"agent" means an entity contracted by a Bureau and approved by the Central Bank to provide the services on behalf of the Bureau, in such manner as may be prescribed by the Central Bank;"amendment notice" means a written notice from an institution advising a Bureau of an amendment to credit information previously incorrectly reported to a Bureau by that institution;"Bureau" means a credit reference bureau licensed under these Regulations to prepare or provide credit reports to credit information recipients based on data maintained by the Bureau and to carry out such other activities as are authorised under these Regulations;"Cabinet Secretary" means the Cabinet Secretary for the time being responsible for matters relating to finance;"Central Bank" means Central Bank of Kenya established under section 3 of the Central Bank of Kenya Act, (Cap. 491);"credit information" means any positive or negative information bearing on an individual's or entity's credit worthiness, credit standing, credit capacity, to the history or profile of an individual or entity with regard to credit, assets, and any financial obligations;"credit information provider" means a person other than a subscriber who furnishes credit information to a Bureau;"credit report" means an electronic, written or other communication of any information by a credit reference bureau, relating to a person's creditworthiness, credit standing, credit capacity, character or general reputation which is used or collected to serve as a factor in establishing that person's eligibility for credit or other service or product provided by an institution or for such other purposes as may be permitted or required by law or contract;"customer" means any consumer of services or products who has a formal engagement to receive services or products on agreed terms and conditions from an institution licensed under the Act or a third party and includes a person who seeks to open an account with an institution;"customer information" means credit information, or any other positive or negative information provided by a customer or obtained from an institution, a third party, or public record information, which may be exchanged pursuant to these Regulations;"database" means a set of customer information collected, managed and disseminated by a Bureau;"director" means a member of the board of directors of a Bureau;"institution" for the purposes of these Regulations, means an institution within the meaning of section 2 of the Banking Act, (Cap. 488) and section 2 of the Microfinance Act, 2006;"loan" means direct, indirect and contingent obligations incurred by an individual or entity with third parties and includes any, credit, discount, advance, overdraft, export bills purchased, other bills receivable or purchased, import bills, customers' liability on off-balance sheet items or any other credit facility extended to a customer of an institution;"negative information" means any adverse customer information relating to a customer which includes-(a)non-performing loan or credit default or late payment on all types of facilities or claims;(b)dishonour of, other than for technical reasons, cheques meant for settlement of credits in favour of institutions;(c)accounts compulsorily closed other than for administrative reasons;(d)proven cases of frauds and forgeries;(e)proven cases of cheque kiting;(f)false declarations and statements;(g)receiverships, bankruptcies and liquidations;(h)tendering of false securities; and(i)misapplication of borrowed funds."non-performing loan" means—(a)pursuant to the Banking Act, (Cap. 488) and Prudential Guidelines, 2013—(i)in respect of, loan accounts and other credit extensions having pre-established repayment programs, when principal or interest is due and unpaid for ninety days or more or interest payments for ninety days or more have been re-financed or rolled-over into a new loan;(ii)in respect of, current accounts, overdrafts, and other credit extensions not having pre-established repayment programs, when the balance exceeds the customers approved limit for more than ninety consecutive days, the customers borrowing line has expired for more than ninety days or interest is due and unpaid for more than ninety days; or(iii)in respect of, off balance sheet items, when the off balance sheet item crystallize and the customer's account is debited and the principal and interest is subsequently unpaid for ninety days or more.(b)pursuant to the Microfinance Act, 2006 and the Microfinance (Depositing Taking Microfinance Institutions) Regulations, (LN. 5 of 2008) a credit facility that is not generating income and the principal or interest is due and unpaid for, more than thirty days and includes a loan or credit facility classified either as substandard, doubtful or loss;"notice of change" means a written notice sent by a Bureau to an institution concerning a significant change to customer information that had previously been obtained by the institution from the Bureau for a period not exceeding twelve months prior to the date of the notice of change;"notice of resolution" means a written notice sent from an institution to a Bureau, advising the results of an investigation the institution has made into customer information previously reported to the Bureau by the institution where the customer has disputed the accuracy of information reported;"officer" means any person who takes part in the general management of a Bureau and includes a director, the secretary to the board, the chief executive officer, deputy chief executive officer, chief financial officer, chief information technology officer, chief internal auditor, or manager of a significant unit of the Bureau or a person with a similar level of seniority, position or responsibility;"performing loan" means any loan which has not been classified as a non-performing loan under the Banking Act and the Microfinance Act, (No. 19 of 2006);"place of business" means any premises including the head office, branch, agency or such other premises as may be approved by the Central Bank, at which a Bureau conducts its business;"positive information" means any information on performing loan or other credit;"significant shareholder" means a person other than the Government or a public entity, who holds directly or indirectly or otherwise has a beneficial interest in more than ten per cent of the share capital of a Bureau or if it is proposed that such a person shall hold or have such a beneficial interest;"subscriber" means an institution licensed under the Banking Act, (Cap. 488) or the Microfinance Act, (No. 19 of 2006) and which has subscribed to receive customer information from a Bureau.Part II – ESTABLISHMENT AND LICENSING OF A BUREAU
3. Qualification and prohibition to operate without a licence
4. Application for a licence
5. Evaluation of application
6. Inspection of premises and systems
7. Issuance of licence
8. Bank guarantee
9. Refusal to issue a licence
10. Validity of the licence
A licence issued under these Regulations shall remain valid unless it is revoked.11. Notification of licenced Bureaus
The Central Bank shall, within thirty days from the date a licence has been issued to a Bureau, by notice in the Kenya Gazette, notify members of the public of the name of the Bureau and the date the licence was issued.12. Revocation or suspension of licence
13. Annual licence fee
14. Non-transferability of licences
Part III – OPERATIONS OF BUREAUS
15. Activitis of the Bureau
16. Use of agents
17. Actions requiring prior approval of Central Bank
18. Nature of information to be shared
19. Protection from liability
20. Prohibited information
21. Form of consent
22. Conditions and form of disclosure to customers
23. Other sources of information
24. Use of public data by Bureaus
25. Duty to provide accurate information
26. Restrictions the use customer information
27. Responsibilities of a Bureau
28. Key facts document on the right to obtain and dispute credit report
29. Subscriber's obligations in respect of information obtained from Bureaus
30. Receipt of credit reports by third parties
31. Fees
A Bureau may, with the approval of the Central Bank charge Fees fees for the services it provides.32. Data management and quality control
33. Updating and maintaining information
34. Security and control measures
35. Customers' rights of access and correction
Part IV – GOVERNANCE AND MANAGEMENT OF BUREAUS
36. Management and composition of a Bureau
37. Qualification for appointment as director
38. Disqualification of officers and employees
39. Suitability test
Part V – DISSOLUTION AND LIQUIDATION
40. Dissolution and winding up of a Bureau
A Bureau licensed under these Regulations may be compulsorily or voluntarily liquidated in accordance with the provisions of the laws relating to dissolution and winding up of companies in Kenya.41. Central Bank approval for voluntary liquidation
42. Notification to the Central Bank
Where a petition has been lodged for the winding up of a Bureau, the Bureau shall, within seven days of such petition, notify the Central Bank of the petition and shall cease from conducting Bureau business immediately a winding up order is made.43. Forwarding of data to the Central Bank
44. Notification to institutions and Bureaus
Where a Bureau is wound up under regulation 40, the Central Bank shall, by notice in the Gazette, notify all institutions and other Bureau of such winding up.Part VI – POWER OF THE CENTRAL BANK
45. Powers of the Central Bank
46. Inspection of Bureaus
47. Ownership of information in possession of a Bureau
48. Periodic returns
Part VII – GENERAL PROVISIONS
49. Mandatory standards for data collection, storage, processing and use
50. Responsibilities of institutions
51. Notification of the amount owing
52. Mode of service
53. Obtaining information under false pretences
A person who knowingly or wilfully obtains information from a Bureau under false pretence commits an offence and shall, on conviction be liable to imprisonment for a term not exceeding two years or to a fine of two hundred thousand shillings, or to both.54. Compliance with guidelines, rules or directives
55. Penalties
56. Repeal of L.N. No. 97 of 2008
The Banking (Credit Reference Bureau) Regulations, 2008, are repealed.57. Savings
History of this document
31 December 2022
Revised by
24th Annual Supplement
Read this version
17 April 2020
24 January 2014 this version
Commenced