Dissolution and Liquidation of Credit Bureaus in Kenya: A Regulatory Guide

Credit bureaus play a critical role in Kenya's financial landscape, but just like any business, they may encounter circumstances that require them to wind up their operations. In such cases, strict regulations govern the dissolution and liquidation process to ensure the orderly closure of these entities while safeguarding the interests of consumers and financial institutions. In this blog post, we'll delve into the specific regulations outlined in Kenya's legislative framework to guide credit bureaus through the dissolution and liquidation process

1. Dissolution and Winding Up of a Bureau (Regulation 52):

The process of dissolving and winding up a credit bureau is carefully regulated to protect stakeholders' interests. Here's a step-by-step guide:

Central Bank Approval (Regulation 53): Before initiating the dissolution process, a credit bureau must seek approval from the Central Bank. This ensures that the decision to dissolve is made in compliance with regulatory requirements.

Notification to the Central Bank (Regulation 54): The credit bureau must formally notify the Central Bank of its intention to dissolve. This notification should include detailed information about the reasons for dissolution, the proposed timeline, and plans for handling outstanding obligations.

Forwarding Data to the Central Bank (Regulation 55): Credit bureaus are required to transmit their credit data to the Central Bank to ensure that consumers' credit histories are preserved and accessible through other credit bureaus.

Notification to Institutions and Bureaus (Regulation 56): Credit bureaus must also inform all relevant financial institutions and other credit bureaus of their intention to dissolve. This notification helps creditors and consumers transition smoothly to alternative credit reporting sources.


The dissolution and liquidation of credit bureaus are complex processes that require careful adherence to regulatory requirements. By following these regulations, credit bureaus can ensure that their dissolution is conducted transparently and responsibly. These regulations not only protect consumers and creditors but also contribute to the overall stability and integrity of Kenya's credit reporting system.
For any credit bureau contemplating dissolution, it is essential to work closely with the Central Bank and other regulatory authorities to navigate this process effectively and in full compliance with the law.