Kes 11.25 billion bad loans are set to be dismissed by NCBA Bank under its digital platforms, aiming at removing Kenyans from negative credit listing.

NCBA Bank is the most hit lender in the recent banking framework sector since it controls 75% shares in the digital lending market with non-performing loans of about Kes 22.5 billion for both Mshwari and Fuliza over the last ten years.

 “Of the Sh15 billion, M-Shwari and Fuliza combined, we are accounting for Sh11 billion of that,” he said.

NCBA chief finance officer David Abuya has said that the Bank is engaging borrowers under Fuliza and M-Shwari that have defaulted on short-term loans to cancel 50 per cent of the amount and repay half within six months.

‘’We have already instituted this change. We have already completed the reclassification of more than five million M-Shwari and Fuliza customers. The communications to each individual began going out on Wednesday.’’ he added.

This comes after the Central Bank of Kenya (CBK) announced a credit repair framework seeking to remove phone digital borrowers from negative listing on credit reference bureaus (CRBs) and improve their credit standing.

The framework is expected to enable more than 4.2 million mobile phone digital borrowers negatively listed with CRBs to repay the balance and be issued with a credit score if they complete within the window of up to May 31, 2023.