Five Key Factors That Shape Your Credit Score, According to Experts

Kenya’s credit scoring system is facing scrutiny as rising living costs drive increased borrowing through digital lenders, who now disburse more than Ksh10 billion each month.

Speaking on NTV on Tuesday, 16 September, Sam Omukoko, Managing Director of Metropol Corporation Credit Reference Bureau, explained the key factors used to determine individual credit scores. He said that repayment history and current levels of outstanding debt carry the most weight, contributing approximately 30 and 40 per cent to a borrower's overall score, respectively. 

These two indicators provide lenders with insight into a borrower’s reliability and financial commitments. Omukoko also outlined three additional elements that influence credit scores: the length of a person’s borrowing history, the types of credit held, and broader financial indicators such as income documentation and residential address. The mix of credit accounts, whether instalment, revolving, or open credit, helps lenders assess repayment behaviour. 

“If it is instalment credit, you will pay monthly; if it is revolving, then you will have a limit, perhaps on your credit card; and if it is open credit, it operates on bullet payments,” he said.

Although this approach aims to combine financial data with behavioural insight, the credit scoring process remains largely inaccessible to the public. Omukoko noted that individuals cannot currently calculate their scores independently, as the algorithms used by Credit Reference Bureaus are proprietary and data-driven. 

However, plans are underway to develop a public dashboard that would allow borrowers to input personal data and estimate their potential credit scores. This tool, he said, is intended to improve transparency and help consumers understand how their financial behaviour affects their credit profile.

Recent data from the Digital Financial Services Association of Kenya (DFSAK) shows that most digital loans in 2024 were used to cover essential needs such as food and medical expenses, highlighting the economic pressures facing many households.