Kenya’s director general of budget, fiscal and economic affairs at the treasury revealed last Thursday that the government is moving to regulate predatory lending brought about by the country’s boom in lending startups.
A number of fintech lenders are said to be using mobile money technology to extend credit to both banked and unbanked customers. The system, which can grant Kenyans loans in a matter of minutes, often leave borrowers burdened with high interest rates.
This led the finance ministry to publish a draft bill on financial regulation to ensure that digital lenders treat retail customers fairly. A final version which will be sent to parliament is expected in the next few weeks.