Lenders must report credit information accurately and promptly delist fully settled debts. Under the CBK (Credit Reference Bureau) Regulations and the Data Protection Act (2019), this is a strict legal duty. A debt that has been fully paid should not remain listed as unpaid.
Paying off the loan must be reflected accurately
The rule concerns both accurate reporting and what happens after full repayment. It is not enough for a lender to receive the final payment while leaving incorrect information about that debt unchanged.
For example, if you have finished repaying a loan but the debt is still listed as unpaid, the important issue is whether the information reflects the settlement. Keep the distinction clear: this rule concerns fully settled debts. Making a payment towards a loan is not the same thing as clearing it.
The duty is to delist promptly. That should not be turned into a specific number of days without a proper basis.
Notice before listing also matters
There is also a statutory pre-listing notice requirement. In plain language, this means notice required by law before listing. Accurate reporting and giving the required notice are separate concerns: a complaint may involve incorrect information, a failure to give notice, or both.
Kenyan courts consistently award general and aggravated damages for defamation and negligence when financial institutions wrongly list cleared borrowers or fail to give statutory pre-listing notice. Damages are financial compensation. This does not mean every complaint automatically leads to an award.
What to keep and what to ask
If you believe a cleared debt remains wrongly listed, focus on a clear record of what happened.
- Keep copies of payment confirmations and any communication about settling the loan.
- Ask the lender in writing to confirm whether the debt is fully settled and whether it has been delisted.
- Keep copies of any notice you received and any replies to your complaint.
- Speak to an advocate if the information remains disputed.
When writing, separate the issues: what you paid, what remains incorrectly reported, and whether you received notice before listing. A clear account is more useful than a broad complaint that leaves those questions unanswered.
Entertainment and general information, not legal advice. For advice on your own situation, speak to an advocate.