A Complete Guide to Credit Scores in Kenya

A lot of it has to do with credit scores! Crazy how much difference a single number on your credit report can make, right?

That’s why nadai tubonge kuhusu how these scores work na mbona ziko that important. By the time you’re done reading this, you should have a thorough understanding of not just credit scores, but also how they’re calculated, how CRB works, how to clear your name from CRB, and so much more.

Let’s get cracking, shall we?

A credit score is a number that shows how reliable you are when it comes to repaying loans. Lenders utumia this number as a measure of how “risky” it is kukupesha pesa–”risky” in this case meaning how likely you are not to repay.

To understand credit scores beyond this basic explanation, lazima ujue these two things:

What is CRB

How credit scores are calculated

Ni ngumu kujua what your credit score means without knowing these two bits of info, so acha tuzichambue teke teke.

CRB is shorthand for the “Credit Reference Bureau,” which refers to institutions authorized by the Central Bank of Kenya (CBK) to collect, manage, and share information about borrowers' credit history. A lot of us think kuna CRB moja, but there are actually three:

•TransUnion

•Metropol

•CreditInfo

Every time unasign on the dotted line kuget loan, you effectively grant the lender permission to share your repayment behavior—everything from late payments to defaults–with these bureaus. The bureaus then use this data to compile your credit report, which contains your credit score.

By the way, each CRB has its own credit score system:

•Creditinfo uses a credit score range of 250 to 900

•Metropol uses a Metro-Score, which has a range of 200 to 900

•TransUnion: uses a range of 1 to 999

But even with these differences, the interpretation is the same across all bureaus: The higher your score, the lower the risk lenders have to take when lending you money, and the better your creditworthiness. We’ll talk about the importance of creditworthiness later—hang in there.

Credit scores ukua calculated based on the info on your report. Although CRB utumia slightly different formulas, kuna several factors that always come into play:

Your payment behavior carries the most weight, accounting for about 45% of your final score. To determine it, CRBs uangalia records of how you paid your previous loans.

A track record of timely payments typically boosts your score, while late payments lower your credit score. Meanwhile, loans overdue by 90 days or more are classified as defaults. These hurt your credit score the most.

Msee yeyote ashaitumia credit facilities like credit cards, mobile loans (e.g., M-Shwari, KCB-M-Pesa, Fuliza), or bank overdrafts ukua na credit limit–i.e., the maximum you can borrow.

Credit utilization is a measure of how much credit you’re using relative to your credit limit. For instance, kama credit limit yako ni Ksh 100,000 and your total debt is Ksh 20,000, your credit utilization is 20% (which simply means you’re using 20% of your available credit).

Credit utilization is the second most important factor CRBs consider when setting your credit score. The lower your credit utilization, the more responsible you appear to CRBs, and the higher your credit score—and vice versa.

The technical phrase for this is “ length of credit history”. To determine it, CRBs uangalia much more than just the age of your oldest account. They also look at the age of other accounts, including new ones, to establish the average age of your accounts.

Generally, a long credit history showing good loan repayment behavior increases your credit score. The reverse is true for a long track record of bad repayment behavior. Meanwhile, a short credit history –or a lack thereof– leaves CRBs with inadequate data to judge your creditworthiness. More often than not, this lowers your score.

This is known as your “credit mix”. It might not be as important as the other factors, but its effect is significant enough to warrant some attention.

Whether you have a good or bad credit mix will depend on the sheer types of credit umetumia in the past. For instance, msee mwenye ako na many different types of credit kwa record yake ako na a good credit mix and vice versa.

Generally, a good credit mix has a positive impact on your credit score. That is, of course, if you’re demonstrating good repayment behavior on all the lines of credit you hold.

Kila time unaapply for a loan ama a new line of credit, your lender submits an inquiry to CRBs about your credit worthiness. These are known as hard inquiries. Having numerous inquiries within a short period on your record is bad for your credit score. It’s an indicator of financial distress, which paints you as less creditworthy in the eyes of lenders.

There are several reasons why you should care about your credit rating. You probably know the first one: it makes it easier to get approved for loans.

But did you know that your credit score also affects how much interest you pay on pretty much every loan you can get in Kenya?

That’s right! Interest rates hazikuangi the same for everyone. Wasee wako na good scores generally upewa lower interest rates because lenders view them as less likely to default. They also get better loan terms including:

•More time to repay the loan

•Access to larger loans (i.e., wanaeza chukua loan kubwa)

•Less strict collateral requirements–i.e., collateral item ataitishwa ni less valuable than if someone with a bad score wanted the same loan.

•Lower loan fees

As a business owner, kukua na good credit score inakupea chance ya kuaccess loans at a cheaper price ju interest rates na loan fees zitakua lower for you. That means ukichukua loan ueke kwa biz, you get to keep more of the profits you make from that loan.

And since a good score makes you attractive to lenders, utakua na options whenever you need a business loan. That means unaeza enda kwa different lenders uchambue interest rates zao, fees, repayment period, and other factors, then uchoose lender mwenye anakupea the best deal. Ukiwa na bad score haunaga ii option; you simply take what you can get.

Being “blacklisted on CRB” is a phrase a lot of us misuse unknowingly. CRBs can’t and don’t “blacklist” you in the traditional sense of the word. In fact, there’s no such thing as a CRB blacklist.

When people talk about “so and so is blacklisted” or “listed on CRB”, what they actually mean is that uyo msee ako negative listing kwa credit report yake. Here’s how such a listing ends up on your report:

⒈You default a loan ama unalipa late – or do anything else your lender considers bad repayment behavior.

⒉The lender records that incident and forwards the record to CRBs.

⒊CRBs add that info to your credit report as a “negative listing” and lower your credit score.

The good news is that negative listings aren’t permanent–you can still remedy the situation. It all starts with knowing whether you have such a listing on your credit report, which brings us to the next part of your discussion…

Ni rahisi kujua kama uko na negative listing. The exact procedure will depend on which CRB you’re getting your report from—fyi, you can use any.

Here are the steps for all three:

TransUnion allows you to check your CRB status in three ways:

•Via USSD: for this method, unatuma your full names to 21272. Utaona request inakushow ueke ID number. Key it in and choose “credit status”. Utaget sms indicating whether you have a “Good” or “Default” credit status–the latter means uko na negative listing. Keep in mind kuna SMS charge ya 19 bob na service fee ya 50 bob.

•Via app: download the TransUnion Nipashe app, fanya registration using your ID number, then follow instructions utapewa. Kuna service fee ya 50 bob, so keep that in mind.

•Via the TransUnion website: ii nayo ni rahisi. Simply visit the website, click “access credit report” on the top right of your screen, then ufuate prompts. Sometimes, website yao ukua na bugs. If it’s not working, try the other two methods above.

Metropol allows you to check your CRB status through the website, app, or USSD code. To use the website or app, visit theMetropol CRB website. You’ll be given the option to download and use the Metropol Crystobol app or access their service via the website.

If you select the app, you’ll be redirected to the download page, where you’ll install the app. Once installed, all you need to do is key in your info, and check your status–this should be easy to do because the user interface is so simple and clear.

If you choose to check your status on the website, you’ll be redirected to a page where you’ll enter the details to complete registration, after which you can access your credit status. Speaking of credit status, it can be either a green list, a black list, or a gold list. Here’s what each means:

•A green list means you have no credit history

•A black list means you’ve got a negative credit history

•A gold list = positive credit history

You can also check your CRB status by dialing *433# from your Safaricom line. Here’s how to go about it:

⒈If you’re new to the platform, start by paying a Ksh 50 registration fee to the following pay bill number: 220388—kwa account number andikia ID number yako.

⒉When they receive the registration fee, utatumiwa PIN, reference number, na link ya kucomplete registration.

⒊Once registered, dial *433# then ulog in na details zako.

⒋Follow the prompts to check your credit status.

CreditInfo is a bit different from the other two. It only lets you check your CRB status via the website. The process is pretty simple: fikaCreditinfo.comalafu uselect “credit report.” Utaletewa menu, from which you need to choose “personal credit report application.”

After apo, you’ll be redirected to a page where you’ll key in your personal info and submit your application. After submitting your info, utatumiwa credit report via email. The report contains your CRB status, along with your full credit history.

Keep in mind that with Creditinfo, you only get one free credit report every 12 months. Ukitaka kurequest credit report more than once within 12 months, every additional report will cost Ksh. 350. This fee is separate from the Ksh 50 verification fee charged for all online applications.

Remember when I said you can fix a negative listing? Here’s how to go about it:

⒈Find out which lenders submitted your name for negative listing and pay what you owe them. If you can’t pay the total straight away, ongea na lender akupee repayment plan.

⒉Ukishalipa madeni, ask your lender(s) for a clearance certificate–this is simply a document showing that you’ve settled your debt with them.

⒊Email the clearance letter to the CRB that listed you negatively.

⒋Wait 14 days for the CRB to get in touch with the lender to confirm everything is correct and update your CRB status.

⒌Check your CRB status to confirm that negative listings have been updated.

⒍Request a clearance certificate from a CRB of your choice. Keep in mind that utalipa Ksh 2200 for the cert.

And just like that, utakua umejitoa kwa “blacklist” ya CRB.

But, and this is important, record yako itashow ushai kua na negative listing for the next 5 years. This, however, doesn’t mean you won’t be able to access loans during that period. As long as you maintain a positive credit history, lenders watafocus more on your current behavior than past negative listings.

If there’s one lesson you need to learn from today’s discussion it’s this: always pay your debts on time. That seemingly inconsequential late payment or default can shut doors that might have given you access to affordable financing for your business.

If you’ve already defaulted, it’s not the end of the world. You can still fix things and get your credit score back up. You just need to start working on that as soon as possible.

Remember, your financial reputation is your most valuable asset—protect it, nurture it, and watch your business thrive.

All the best!