Kenya’s Credit Reference Bureau Introduces Borrowing Limit Framework to Curb Over-Indebtedness

The Credit Reference Bureau (CRB) under the Central Bank has introduced a national borrowing limit framework to prevent over-indebtedness. Effective April 2024, lenders must cap total loan exposure at 50% of a borrower’s verifiable income. The system uses real-time data from banks, SACCOs, and digital lenders to calculate capacity. Over 18 million adults are covered by the enhanced CRB. Early results show a 30% drop in repeat borrowing and fewer defaults. Consumers can access their credit reports via USSD (*384*3#). The CBK says the framework promotes responsible lending while maintaining access to credit for underserved segments.