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Why court reinstated regulation of CRBs
CBK says that the absence of CRB Regulations was hindering the discharge of its constitutional mandate
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What you need to know:
- CBK had submitted that the absence of the regulations was hindering discharge of its constitutional mandate
- CBK moved to the Court of Appeal contending that the entire credit information sharing framework had been thrown into total disarray as the regulator cannot enforce or implement the rules.
The Court of Appeal has temporarily reinstated Credit Reference Bureau (CRB) Regulations, which were nullified by the High Court last year, handing the Central Bank of Kenya powers to supervise entities that help lenders to assess a borrower's creditworthiness.
The Banking (Credit Reference Bureau) Regulations 2020 were declared null and void by Justice Mugure Thande on August 28, for noncompliance with section 11 of the Statutory Instruments Act, on timelines.
