CIS Compliance Requirements 

Module Overview

There is no doubt that operating in accordance with laid down laws, procedures and guidelines will always create a conducive environment for any organization to thrive. This, therefore, anchors compliance at the center of key organizational concerns in daily operations. Compliance also encompasses upholding both industry guidelines and government legislation.

In Kenya’s Credit Information Sharing (CIS) mechanism, several pieces of legislation have been enacted to provide a legal and regulatory framework for the operation of the mechanism. These include; the Central Bank of Kenya Act, the Banking Act, the Microfinance Act, the Sacco Societies Act, the Data Protection Act, the Credit Reference Bureau Regulations and the Kenya Banking Sector Charter, 2019.

It is important to note that, on various occasions, the Kenyan Court has upheld the constitutionality of the CRB Regulations. However, the manner in which they are applied by individual institutions can be a subject for contention in court. Credit Providers must keep the compliance eyes open and must do everything within the law. This calls for continuous capacity building of both old and new staff who handle CIS matters. As the legal maxim says, “ignorantia Juris non-excusat” (ignorance of the law excuses not)

This module is therefore critical in ensuring that participants in the CIS mechanism comply with the relevant pieces of legislation as failure to do so may expose them to legal and reputation risk.

 

Objectives of this module

The key objectives of this module are to make the learner;

1.      Gain an understanding of the role of compliance in corporate governance

2.      Appreciate compliance provisions under CRB Regulations, 2020

3.      Identify barriers to full compliance on CIS

4.      Acquire tips to strengthen CIS compliance

5.      Appreciate learnings from Court cases challenging the CIS mechanism