CBK and KBA have launched a digital collateral registry to streamline the process of transferring collateral between banks. The initiative, developed in collaboration with financial institutions, allows borrowers to move their assets more easily and at lower cost.
The system, built on an electronic platform, enables real-time tracking of collateral holdings. This reduces administrative delays and minimizes the financial burden on borrowers. According to Thugge, the project could significantly enhance liquidity for individuals and businesses.
The move follows growing demand for more flexible financial services. Previously, transferring collateral required extensive paperwork and time. The new registry is part of broader efforts to modernize Kenya’s financial infrastructure. It aligns with global trends toward digital financial solutions.
