Bid to stop aspirants' vetting by credit bureaus
Kasipul Kabondo MP Joseph Magwanga Oyugi said that bureaus are charging too much for the service, adding that unnecessary fees have been levied to take advantage of the political season to mint money. PHOTO/ FILE
What you need to know:
- They argued that the clearance being undertaken to ascertain whether candidates have defaulted on their loans is illegal as the requirement was deleted from the vetting regulations.
- Githunguri MP Njoroge Baiya and his Kasipul Kabondo counterpart Oyugi Magwanga called on political parties to stop forcing candidates to seek clearance from CRBs.
- Mr Magwanga said that bureaus were also charging too much for the service, adding that unnecessary fees have been levied to take advantage of the political season to mint money.
Politicians now want credit reference bureaus stopped from undertaking any vetting on aspirants seeking various posts in the coming elections.
They argued that the clearance being undertaken to ascertain whether candidates have defaulted on their loans is illegal as the requirement was deleted from the vetting regulations.
Githunguri MP Njoroge Baiya and his Kasipul Kabondo counterpart Oyugi Magwanga called on political parties to stop forcing candidates to seek clearance from CRBs.
“This is something that is now illegal because it was rejected by MPs. It is interesting some parties are still compelling their candidates to seek clearance certificates,” Mr Baiya said.
Mr Magwanga said that bureaus were also charging too much for the service, adding that unnecessary fees have been levied to take advantage of the political season to mint money.
“They are charging Sh2,000 which is too much. We want this thing stopped because it is illegal and unacceptable,” he added.
The two lawmakers said that politics in Kenya was becoming too expensive for ordinary people.
But the chief executive officer of Metropolis Credit Bureau, Mr Sam Omkoko, said the fee is acceptable within the market and has not been designed for politicians.
Valuable information
“We are selling valuable information. In fact banks buy this same information at between Sh100,000 to Sh500,000 per report,” he said.
Mr Omkoko, whose bureau is undertaking the clearance, said that the number of politicians seeking clearance from their offices has increased, with over 150 people seeking their services on a daily basis.
“We are keeping crucial information, including lists of people who have defaulted and those issuing bouncing cheques, but for this purpose we are only issuing certificates on defaulters,” he said.
On Monday, the Nation reported that MPs have been put on notice by Parliament’s two Saccos asking them to clear their loans before the end of December ahead of the elections expected in March. (READ:MPs may be blocked from poll over debts)
