April 9th, 2026

For low-income households especially women and small enterprises across Kenya, access to appropriate and affordable credit remains out of reach. The FinAccess 2021 survey revealed a stark reality: while most households borrow, the majority, disproportionately represented by women, rely on informal lenders, often at high cost. For these borrowers, the absence of reliable data trails contributes to their exclusion from formal credit markets and higher interest rates, particularly for those whose risk profiles are not well understood.

For over two decades, FSD Kenya has recognised that robust credit market infrastructure, and particularly effective credit information sharing (CIS), is essential to shifting this landscape. From early investments in legal reform and institutional partnerships, FSD Kenya has over the years has helped lay the foundation for a responsible and inclusive credit ecosystem.

As credit provided by non-bank providers exploded across Kenya over the last decade, it became clear that the credit information sharing mechanism needed reforming. A persistent problem stood out under this new credit landscape. Credit providers, ranging from large banks to small digital lenders, struggled to comply with the credit information submission process. Smaller providers, many serving women and microenterprises, often submitted data to only one CRB, leaving large parts of the market with an incomplete picture of their customers’ credit histories. The gaps widened exclusion and distorted risk assessments across the sector.

In response, the Central Bank of Kenya in 2017 constituted a Technical Working Group (TWG) to identify candidate proposals aimed at reforming and streamlining Kenya’s Credit Information Sharing mechanism. The TWG was tasked with revising the data submission template, standardising CRB data validation rules, recommending a unified model for validating and submitting credit information, and harmonising how credit scores are interpreted across the three bureaus. validation rules, recommending a unified model for validating and submitting credit information, and harmonising how credit scores are interpreted across the three bureaus.

CIS Kenya, with the support of FSD Kenya, made contributions towards the achievement of objectives set out by the TWG. In 2019, CIS Kenya took up the implementation of the third objective and developed a data validation and submission tool, popularly known as the CIS ValiData. FSD Kenya supported this initiative through the provision of technical assistance, capacity support and continued facilitation of consultations between the relevant stakeholders. In 2020, new regulations for credit reporting issued by CBK formally recognised the CIS Validata as a mechanism for validating and submitting credit information – an important policy milestone influenced by this work. The Central Bank of Kenya approved the rollout of the CIS ValiData on 5 August 2025, followed by a public launch in September, marking a major milestone for Kenya’s credit market infrastructure.

The CIS Validata embeds the industry agreed validation rules, checking both format and logic before any data is transmitted. It generates precise error logs that credit providers can correct instantly, and crucially, it blocks submissions that fall below the industry’s quality thresholds. With API based simultaneous submission to all three CRBs, the CIS ValiData eliminates the inconsistencies that previously arose when providers submitted data to different bureaus at different times. This innovation does more than streamline compliance. It democratises participation in the CIS ecosystem, enabling smaller and informal lenders, who are major financiers of women and nano-enterprises, to participate in the CIS mechanism. As they begin submitting high quality data across all CRBs, borrowers who were once “invisible” to the credit market can finally build formal credit histories.

Looking ahead, the CIS ValiData is poised to evolve alongside Kenya’s digital economy. As the country explores open finance frameworks and new models of data sharing, the tool will play an increasingly important role in integrating diverse data sources, strengthening data governance, and supporting consumer centric innovations.

For FSD Kenya, the CIS ValiData is a testament to the power of long term partnership, systems thinking, and targeted investment in financial market infrastructure. By supporting its development and rollout, FSD Kenya has helped lay the foundation for a future where accurate, credible data drives a more inclusive and dynamic credit market.

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