Connect with us

Hi, what are you looking for?

www.capitalfm.co.ke
www.capitalfm.co.ke
Digital Lenders Welcome Proposal to be Regulated by CBK /COURTESY

Kenya

Digital Lenders Welcome Proposal to be Regulated by CBK

NAIROBI, Kenya, Jul 9 – Digital Lenders now say they support the proposal to have their work regulated by the Central Bank of Kenya (CBK).  

In a statement, Digital Lenders Association Chairperson Kevin Mutiso says they support the recent regulation drafted by the parliamentary finance and planning committee proposing to put them under the regulatory ambit of CBK.

The Association has however made a raft of proposals they want implemented in the Committee’s draft, among them having regulation that is focused on the registration process instead of licensing.

Such registration, Mutiso said, would be managed by CBK, and digital Lenders would be obliged to update the data contained in the register.

“Digital Lenders are small companies with a maximum of 30 employees. Thus, the best solution is to use regulatory systems that will fulfill its task and make the legislator feel comfortable with the applied solution, but at the same time will not cause a significant increase in the operating costs of a company, nor will it be a complicated and highly formalized process.”

www.capitalfm.co.ke

The digital lenders also want the CBK to allow them into the credit information sharing system /COURTESY

The digital lenders also want the CBK to allow them into the credit information sharing system from which they were locked out at the onset of the COVID-19 pandemic.

“We propose to add direct regulation that the Digital Credit Providers will be entitled to receive the reports from CRBs and to submit the reports with credit information to CRBs as well,” he said.

The lenders also want all customers to be provided with clear, transparent, and articulated information on the pricing of the loans before they apply for the loan.

This should be done by providing the conclusion of the loan agreement in the unified form with the key financial information concerning the loan.

“This solution is implemented in all EU countries, but also we can find it in Uganda.”

Advertisement. Scroll to continue reading.

To further increase consumer protection, the Association also calls for the establishment of a position of a financial ombudsman within the CBK structures, responsible for examining customer complaints.

1 Comment
Advertisement

More on Capital Business

Executive Lifestyle

NAIROBI, Kenya, Mar 12 – The country’s super wealthy individuals are increasing their holding of bonds, gold and cash, a new report by Knight...

Ask Kirubi

NAIROBI, Kenya, Mar 9 – Businessman and industrialist Dr. Chris Kirubi has urged members of the public to exercise extreme caution when making any...

Ask Kirubi

NAIROBI, Kenya, Mar 24 – Businessman and industrialist Dr. Chris Kirubi is set to own half of Centum Investment Company PLC, following a go-ahead...

Ask Kirubi

It is without a doubt that the COVID-19 pandemic has caught the whole world by surprise. Although its full impact is yet to be...

Kenya

NAIROBI, Kenya, Jun17 – Kenya’s tea leaves manufacturer Kericho Gold, has been awarded the Superbrands Seal by Superbrands East Africa for their quality variety...

Headlines

NAIROBI, Kenya, Mar 18 – Commercial Banks have been ordered to provide relief to borrowers on their personal loans, with loans eligible from March...

Coronavirus

NAIROBI, Kenya, Apr 13 – As the local telecommunications industry gears up to roll out 5G networks in the country, the Communications Authority of...

Coronavirus

NAIROBI, Kenya, Mar 22 – Airtel Kenya is offering free internet access for students in order to enable continued learning at home in the...