Businessman seeks Ksh.22M compensation from CRB over alleged wrongful blacklisting

A businessman has filed a petition in court seeking Ksh.22.3 million compensation from the Credit Reference Bureau (CRB) over what he terms as wrongful blacklisting.

The petitioner, David Sila Onyango, claims CRB has negatively listed him over an alleged debt of USD 2.1 million (over Ksh.200 million), a move that has resulted in him being denied credit by a local bank.

He says on October 2 last year he applied for a Ksh.30 million credit facility from the Co-operative Bank of Kenya but the application was declined on the grounds that he had a negative or adverse listing by CRB.

Mr. Onyango, who has investments in the freight and logistics industry, says despite demanding for the particulars of the alleged indebtedness that resulted in the blacklisting from TransUnion from September 2020, the firm has ignored his emails and a demand letter from his lawyer Fred Orago.

He maintains that he has never had a debt totaling the said amount of USD 2,187,218.03 as set out in CRB’s Consumer Report.

“Despite the defendant (CRB) being duly notified of the incorrect negative listing, it has not taken any steps to delete the said listing or otherwise provide the particulars of the said listing,” says Mr. Onyango in court documents.

It is now his argument that CRB listed him as a defaulter in utter disregard of its statutory duties as a duly licensed credit reference bureau pursuant to the provisions of the Banking Act.

“In consequence of the said wrongful listing, I have been gravely injured in my credit, reputation, character and standing as a person in the way of my occupation and profession as an astute businessman and now I am unable to get any credit from registered establishments,” he argues.

In addition to the compensation, he is also seeking a permanent injunction restraining CRB from negatively listing him.

The matter will be mentioned on September 20, 2021.