Nairobi Senator Edwin Sifuna has called for an end to the use of Credit Reference Bureau (CRB) records in the recruitment process, arguing that the practice unfairly locks many qualified Kenyans out of employment.
Speaking in the Senate on Wednesday, Sifuna said CRB reports were created to help financial institutions assess the creditworthiness of borrowers and not to determine whether someone is fit for a job.
According to the senator, more employers are increasingly asking job applicants to produce CRB clearance certificates, a requirement he says has become a major obstacle for many young people struggling to secure employment.
“Though CRB was designed to close the gap in financial information between the lender and borrower to assist banks manage risks during lending, its emerging role in employment checks is increasingly denying many competent young people access to employment,” explained Sifuna during the debate in the Senate.
According to him, incompetent listing by CRB denies competent individuals a chance at gaining employment even though employment will be their chance at earning money and repaying the debt for which they have been listed.
Sifuna says this locks them into a vicious cycle whereby they fail to pay off their debts due to unemployment but are denied jobs because of these debts.
The senator warned that the growing reliance on CRB records during hiring raises concerns about fairness, privacy and equal access to employment, especially at a time when many young Kenyans are struggling to find work.
He has now asked the Senate Labour and Social Welfare Committee to explain why some employers continue using CRB reports as part of their recruitment process despite the bureaus being established primarily to support lending decisions.
The committee has also been tasked with outlining measures that can protect job seekers from being denied employment solely because of their CRB status.
In addition, Sifuna wants lawmakers to examine whether there are sufficient safeguards to prevent misuse of personal financial information held by Credit Reference Bureaus and to ensure the data is not used for purposes beyond those provided for in law.
He further called for a balance between promoting financial responsibility and protecting Kenyans from being unfairly excluded from employment opportunities.
If adopted, the proposal could bring relief to thousands of job seekers who have missed out on employment because of negative CRB records, despite meeting the qualifications required for the jobs they applied for.