Saccos in Kenyan will be compelled by the law to list defaulters with the Credit Reference Bureaus in the country. This comes after parliament pass a law requiring that all Saccos will be required to provide both negative and positive information about their customers.
The Sacco societies amendment bill is among other 20 laws that were annulled by the High court in late last year. The high court found out that it was unconstitutional for the National assembly to ignore the senate. The court directed that the senate’s input into the proposed laws was very vital and important.
The bill is currently awaiting its third reading after it sailed through perfectly through the second reading. This bill was published again in regards to orders issued by the high court. The majority leader was quoted saying.
Before this proposed law, Sacco societies were not required to provide Credit Reference Bureaus with Negative information about their clients.The Saccos were only authorised to supply the CRB’s with the positive information. The societies had to also inform their clients of the intend share of credit information.
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While sharing of Credit data has been ongoing,the institutions in questions have been doing so as third party’s. This bill seeks to amend and change that.