The concept of Credit information sharing is relatively new in Kenya. This study therefore will provide important insights on the benefits and challenges of CIS to the deposit taking microfinances. From the study deposit taking microfinances will be able to identify gaps between their expectations of CIS and the expectations of their customers and the regulator.
This will go a long way in assisting deposit taking microfinances in determining how best they can utilize the shared customers’ credit information.1.5.2 Investors and IndividualsIndividuals, Businesses and other investors will be the key beneficiaries of this study. For example, the need to maintain a good credit history is highlighted to this group and this will helpthem in their future personal/business debt management.
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1.5.3 To the GovernmentFollowing the formulation and subsequent passing of the Banking (CRB) regulations in theyear 2008, the government expected to increase access to credit, improve terms of lendingand reduce credit delinquency through sharing of credit information among financial institutions. The findings of this study will be therefore important in evaluating the success of this initiative. The study provides a basis upon which further policy decisions on CRB operations could be made.
1.5.4 Academicians and ResearchersThis study will contributed to existing literature in the area of credit reference bureaus and will undoubtedly inspire prospective researchers to conduct more studies in the area.1.
6 justification of the studyThis study will contribute to the existing body of knowledge on Credit Reference Bureaus and credit information sharing in Kenya. It will also serve as insight on the impact of credit information sharing and Credit Reference Bureaus on the Kenyan deposit taking microfinance sector for the last five years. It will help to quantify the benefits of credit information sharing in the Kenyan credit market and the role that the Credit Reference Bureaus play in the financial services sector.
Further, the study will serve as an engineering tool for the government and policy makers in formulating new or improving existing policies. In addition, it will also serve as a tool for the deposit taking microfinance sector towards making more accurate credit decisions.1.7 Scope of the StudyThis study will cover deposit taking microfinances in Kenya where the study will be carried out in five selected deposit taking microfinances in Kenya; this is because the area forms a better representative sample of the deposit taking microfinances in Kenya