We take a look at services you cannot get if you are blacklisted on CRB and 5 other institutions that can ruin your life. There are 5 institutions in Kenya that can completely ruin your life and CRB is one of them. in this post, we will be discussing services you cannot get if you are blacklisted on CRB.
The CRB blacklist currently holds close to 1 million Kenyans who have been unable to repay their loans. Unfortunately, most of the blacklisted Kenyans are young people who have been entered the CRB blacklist for amounts as small as Ksh100.
Just try to figure out what you can do with Ksh 100 in Kenya today. You can buy a loaf of bread and a packet of milk, for some people it is not even enough to pay their fare to and from work but still, for lending institutions, it is money owed and should be repaid.
According to a report published early this year, banks and mobile loan apps have been misusing CRBs by blacklisting Kenyans for amounts of less than Ksh 200. As a matter of fact, more than 450000 Kenyans in the CRB blacklist should not be on the list of defaulters.
That said, were are going to shift our focus to the effects of being listed on CRB and why lending institutions should think twice before they forward people’s names to the CRBs in Kenya.
Services you cannot get if you are blacklisted on CRB
The following are some of the crucial services you cannot get if you are blacklisted on CRB in Kenya. Although serious loan defaulters should be listed on CRB, some lending institutions including banks and mobile loan apps have been misusing the platform.
They have been blacklisting people who do not fall in the category of serious defaulters. Let’s now see the services you cannot get if you are blacklisted on CRB:
You cannot get Loans from Banks if you are blacklisted on CRB
The fact that your name appears in the CRB blacklist means that you are a high-risk borrower who does not repay their debt. For this reason, banks will shy away from giving you a dime because there is a high probability that you will not repay the loan.
While this may not always be true, most banking institutions depend on CRB to determine whether a borrower has a good credit score.
Employers will not give you a job if you are listed on CRB
As jobs in Kenya continue to be more competitive, employers are constantly looking for new ways to chop the long list of applicants. One such way is looking at the applicant’s credit score.
To employers, an individual’s credit score is a mere depiction of the person’s morals and ability to handle and manage finances. You may have the best grades and the best skills in the bunch but thanks to a bad credit score, it will be hard for you to get a job in Kenya today.
Mobile loan apps cannot give you a loan is you are blacklisted on CRB
Mobile loan apps use machine learning algorithms which derive data from CRBs to establish a borrower’s creditworthiness.
Based on that, the lending app determines where you will get a loan or not. If you are listed on CRB, your guess is as good as mine, you will not get a loan from any mobile loan app in Kenya.
Five institutions that can ruin your life
After looking at Services you cannot get if you are blacklisted on CRB and how CRB can make hell out of your life, I thought it would only be fair if I talked about the other institutions that can ruin your life.
- Kenyan police Department
- Directorate of immigration and registration of persons
- Kenya Revenue Authority (KRA)
- Higher Education Loans Board (HELB)
Kenya Police Department
If you want to enjoy your citizenship and basic human rights in Kenya, my friends you have to be in good standing with the police. On the flip side, if you land on the wrong side of the law, you will rot in jail for petty issues.
The Kenya police department is one institution that can make your life a living hell if you step on their tail.
If you get into their records for any wrongdoings, it is something that will never go away, ever! You will see this when you apply for a good conduct certificate where all the crimes you have committed will be highlighted.
The certificate of good conduct is very crucial nowadays and you cannot get some services or jobs without it in Kenya. Here are some of the government services that require you to have a good conduct certificate:
- Applying for government jobs
- Visa Application
- Obtaining multinational jobs or contracts
- Applying for work permits in and out of Kenya
- Bidding for tenders
According to the Kenya Police website, “The certificate of good conduct in Kenya shows that an individual is of good morals, behavior and obeys the law.” You can read on how to apply for a good conduct certificate here
Higher Education Loans Board (HELB)
HELB is a very important body and to be honest, it has helped very many students in campuses and colleges. However, not many people remember are prioritize on repaying their HELB loans. This is something that HELB does not take kindly.
HELB requires you to start repaying your HELB loan one year after you complete your University education. If you are late on paying the HELB loan, the penalties start to increase steeply attracting a fine of Ksh 10000 on the first month you fail to pay.
If you default on the second month, your loan attracts another fine of Ksh 5000 per month until you complete repaying your loan. HELB can ruin your life because they expect you to pay their loans whether you will be employed or not one year after completing your studies.
What is even worse, some employers ask for the compliance certificate showing that you are repaying your HELB loan faithfully.
What is even ridiculous is the fact that employers are asking for the HELB compliance certificate even if you were not a beneficiary of the HELB loans.
Considering that the certificate is issued at a cost of Ksh 1000 that is a lot of pressure on first-time job applicants.
Risk of not paying back your HELB loan
- You will not get a job easily if you are non-compliant.
- HELB has debt collectors who will track you down even if you live abroad
- Your children will not qualify for the HELB loan in future
- Government institutions may deny you promotions for lack of compliance
- You will be blacklisted on CRB hence preventing you from getting loans from banks
Kenya Revenue Authority (KRA)
Many people may not know this but failing to file your tax returns in detrimental. Like most of you will know, KRA imposes a Ksh20000 penalty for returns not filed by the June 30th deadline. On top of that, there is a 1% interest charged on the due tax.
This has caused problems for many job seekers in Kenya who have failed to provide a tax compliant certificate due to unfiled tax returns.
Employers ask for a tax compliance certificate from their employees because they do not want to inherit tax burdens. Some of the troubles you may go through for failing to file your returns include;
- Trouble when buying property
- You may not be allowed to import goods
- Trouble running an office of applying for a job
- You may not qualify for tenders
- There will be immigration problems when processing your information
KRA is one institution that you never want to mess with and most business people will tell you that. You should have proper business records that help KRA to establish the amount of tax you owe them.
Failure to produce proper records can attract a fine of Ksh 10000-200000. If you are suspected of tax evasion, you should brace yourself since you will be slapped with a fine of not less than Ksh. 400000 or imprisonment.
Directorate of immigration and registration of persons
Did you know that it is an offense to not have an ID if you are above the age of 18 years in Kenya? The government of Kenya under section 6 of the registration of persons Act cap 107 requires all Kenyan to apply for an ID when they attain the age of 18 years.
An ID is so important such that homeless people on the streets may not have anything else but a simple ID card.
Without an identification card in Kenya, you will be denied some of the basic rights and services in the country. Some of the things you cannot do without an ID include;
- Transacting money
- Owning a Simcard
- Access to all government services
No man is an island but if you do not have an ID, you will soon realize that we are living in a cruel world that you can only survive is you have an identity.
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