Fast-track CBK rules on digital lending practices

Fast-track CBK rules on digital lending practices

Editorials

Fast-track CBK rules on digital lending practices

Thursday December 09 2021 cbk

The Central bank of Kenya, Nairobi. FILE PHOTO | NMG

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Summary

  • One only needs to look at the annual effective rates that they charge on loans to appreciate the kind of financial damage unregulated lending can do to an economy.
  • While the digital lenders had proposed self-regulation to avoid being put under CBK watch, the reality is that a financial system needs oversight to prevent abuse and protect consumer rights.
  • Putting the digital lenders under the CBK’s watch will address concerns about consumer data protection.

The signing into law of the Central Bank Amendment Bill 2021 that brings digital lenders under the watch of the banking regulator should draw a line under their predatory lending.

One only needs to look at the annual effective rates…

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