Nairobi Senator Edwin Sifuna has proposed abolishing the use of Credit Reference Bureau (CRB) records as a requirement during job recruitment, arguing that the practice is denying many qualified young Kenyans employment opportunities.
Addressing the Senate, Sifuna said CRBs were established to help financial institutions assess credit risk, but their increasing use by employers in recruitment has become a major barrier for job seekers.
He argued that negative CRB listings continue to disadvantage competent applicants, preventing them from securing jobs even though employment would enable them to earn an income and settle the debts that led to the listings.
“While the CRB was established to bridge the financial information gap between lenders and borrowers and to help financial institutions mitigate lending risks, its emerging use in employment screening is increasingly locking out many qualified young people from job opportunities,” Sifuna said.
“Negative listings deny otherwise competent applicants the chance to secure employment, even though such jobs would provide the financial empowerment necessary to clear the debts that led to the listings.”
The senator has asked the Senate Standing Committee on Labour and Social Welfare to explain why some employers rely on CRB records during recruitment, despite the bureaus being established primarily to support lending decisions by financial institutions.
He also wants the committee to outline measures to stop the practice, safeguard personal data held by CRBs from misuse, and ensure recruitment processes promote fair labour practices and equal access to employment opportunities.
Sifuna further raised concerns over pay disparities between Kenyan and foreign employees working for international organisations, particularly international media houses operating in the country.
He asked the Labour and Social Welfare Committee to explain the oversight measures in place to ensure equal pay for equal work, conduct a comprehensive audit of salaries and employment benefits in international organisations, and outline corrective measures to address disparities while ensuring compliance with Kenyan labour laws.
In Kenya, CRBs are licensed institutions that collect, store and analyse individuals' credit histories. Banks, SACCOs and digital lenders use this information to assess borrowers' creditworthiness.
CRB records include positive listings for borrowers with good repayment histories, neutral listings for individuals with little or no credit history, and negative listings for those who have defaulted on loans or repeatedly made late repayments.
The three CRBs licensed by the Central Bank of Kenya are Metropol, TransUnion Creditinfo and Creditinfo Kenya.
Borrowers who clear loan defaults may obtain a CRB Clearance Certificate, also known as a Certificate of Clearance, which employers and lenders often use to verify their financial standing.
In a separate matter, Sifuna sought answers over delays in the payment of terminal benefits and salary arrears owed to former employees and retirees of Muhoroni Sugar Company. He called for details on funds allocated, payment timelines and measures to support the affected workers.
He also requested updates on outstanding dues owed to former employees of Chemelil, Nzoia, Miwani, Mumias and Sony Sugar companies.
Additionally, the senator raised concerns over delays by the Engineers Board of Kenya (EBK) in registering graduate engineers, noting that some applicants have waited for more than 10 months despite the board's four-month service timeline.
He sought information on the number of pending applications, the reasons for the delays and the reforms being implemented to speed up the registration process.
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