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Digital lending apps mushroom in the East African nation with scant regulation seen permitting data abuse, debt shaming. Government moves to regulate loan apps to curb data violations.
Digital lenders have boosted access to credit in Kenya but some are using 'predatory' practices to profit from the poor, consumers and authorities say
Digital lenders have boosted access to credit in Kenya but some are using 'predatory' practices to profit from the poor, consumers and authorities say
Some borrowers say the loan apps are infringing on their data privacy http://cms.trust.org/item/20210129082306-xfbjk by bombarding the contacts saved on their phones with calls and message when they default. Digital rights groups also accuse them of illegally sharing clients' personal information with third parties and charging exorbitant interest rates that push poor families deeper into debt.
Kenya’s borrowers, mostly low-income, have complained of harassment when they delay payments by only a day.