An Assessment of the Role of Credit Reference Bureau in Influencing Risk Identification in Mitigating Credit Default in Commercial Banks in Kenya

The study examined the role of Credit Reference Bureau (CRB) in influencing risk identification in militating against credit default in commercial banks in Kenya.The study used a Causal-Comparative descriptive survey design in evaluating the role of CRB in influencing risk identification in mitigating against credit default in commercial banks in Kenya.The target population of the study consisted of all the 43 licensed commercial banks in Kenya and the three licensed credit reference bureaus in Kenya under the Banking Act.The researcher used census method commercial bank headquarters bank managers and the three headquarters credit reference bureau managers.Primary data was collected using questionnaires.Secondary data were collected from CBK loan books and CBK annual Bank supervisory reports.Data was analyzed using SPSS and results presented using graphs.The researcher used descriptive statistics and inferential statistics.Inferential statistical tests used comprised of correlation, ANOVA regression and Chi-square analysis to test hypothesis.P -value yielded was less than 0.05, which indicated that the roles played by CRB in influencing risk identification have significant influences on the Credit Default Rate in commercial banks in Kenya.The conclusion was that CRB plays a significant role in risk identification.