Record 400 digital lenders seek licence to operate in Kenya
Piles pressure on microfinance institutions.
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Piles pressure on microfinance institutions.
Kassait says penalising sends a strong message
Kenyans are giving tales of pain including the sale of personal assets to get creditors off their backs.
In the recent past, there has been an increase in digital lending most households have adopted this kind of borrowing to get by on daily expenses. Due to the flooded market of digital lenders, Kenyans have in the past fallen victim to credit fraud that includes high-interest rates, rollover fees, and hidden charges when receiving credit. Also, unauthorized Digital Lenders have been found to abuse personal information as well as enforce unethical debt collection practices.
The move will caution loanees as many Kenyans rely on loans from digital leaders given the short duration it takes for the loan to be processed.