kenya Crackdown on Mobile App Money Lenders

Digital and mobile app money lenders in Kenya have been given until the end of September to either apply for an operating licence or cease operations.

“Regulations governing the lenders will be gazetted later this month, meaning all the apps will be regulated by the government.” The Central Bank of Kenya Governor Peter Njoroge said.

They’ve often been accused of ‘predatory behaviour, high interest rates and customer harassment’ for those who failed to pay the loans on time.

The government has since early 2020 blocked digital lenders from listing defaulters with Credit Reference Bureaus saying the companies had abused the system.

These lenders are popular in Kenya because of their “fast loan processing.” 

BBC/Christopher Ojilere