Financial sector leaders call for better data sharing to expand credit access

Nairobi, Kenya - Financial sector leaders have urged for enhanced data sharing and stronger connections between financial platforms to improve access to credit in Kenya. This plea was made during the 3rd National Credit Market Convention, organized by the Metropol Credit Reference Bureau at Lake Naivasha Resort. Rashmi Pillai, CEO of FSD Kenya, emphasized that responsible lending, consumer protection, and financial stability are essential to grow the credit market.

Ambassador Prof. Bitange Ndemo highlighted that interoperability should extend beyond connecting digital platforms, stressing the need for shared standards and secure systems to facilitate safe information transfer between platforms. Paul Manga, Director of Bank Surveillance at the Kenya Deposit Insurance Corporation, underlined the importance of deposit insurance and risk monitoring in sustaining trust in the financial system.

A panel discussion on credit access touched upon gaps in borrower information, limited data on customers with limited credit histories, and the use of alternative data in lending decisions. Metropol CRB CEO Gideon Kipyakwai stated that improved access to reliable information could assist lenders in identifying suitable borrowers, accurately assessing risk, and expanding credit access.

Kipyakwai noted that Kenya's credit access issue extends beyond capital availability; it is also driven by information gaps that hinder lenders' ability to identify viable borrowers and accurately price risk.