NAIROBI, Kenya, Jul 24 – The public is being warned to be wary of unlicensed and unregulated financial services and products which include online pyramid schemes, credit and savings schemes as well as fraudulent mobile loan applications.
Through a joint statement, various regulatory bodies outlined some of the features of these products which include payment of a registration fee, promise unusually high returns, do not have a registered physical address.
“Some of the features of these products include payment of a registration fee, members of the public being required to save before qualifying for a credit facility and reliance of investment strategies that are not explained or clearly understood,” they stated.
The bodies which include the Central bank of Kenya, the Capital Markets Authority, Insurance Regulatory Authority and the Retirements Benefits Authority stressed the need for Kenyans to deal only with licensed financial institutions and entities.
“Members of the public are reminded to confirm the authenticity of financial services and products with financial institutions particularly when a registration fee or savings is required,” they said.
They further urged financial institutions to be vigilant of any product or services that mimic theirs and take appropriate measures to protect their customers.
“Financial institutions are also reminded to prominently display their licensing status as well as the name of the regulator on their premises, websites, applications and advertisements.”