• Advertise with Us
Monday, December 4, 2023
  • Login
No Result
View All Result
NEWSLETTER
Kenyan Wallstreet
  • Home
  • News
    • Kenyan News
    • African News
    • Global News
  • Business
    • Agriculture
    • Banking
    • Aviation
    • Energy
    • Manufacturing
    • Markets
    • Technology
    • Startups
  • Money Matters
  • Podcast
  • Videos
  • Digital Assets
  • Calendar
  • Home
  • News
    • Kenyan News
    • African News
    • Global News
  • Business
    • Agriculture
    • Banking
    • Aviation
    • Energy
    • Manufacturing
    • Markets
    • Technology
    • Startups
  • Money Matters
  • Podcast
  • Videos
  • Digital Assets
  • Calendar
No Result
View All Result
Kenyan Wallstreet
No Result
View All Result

CBK Governor Advocates For Regularisation of Fintech Lenders

Angeline MbogobyAngeline Mbogo
June 3, 2018
in Kenyan News
Reading Time: 2 mins read
Central Bank of Kenya Governor Dr Patrick Njoroge

The Central Bank of Kenya (CBK) governor Dr Patrick Njoroge has advocated for the regularisation of fintech lenders. The financial lending sector in the country has been growing steadily with over 20 companies exploiting the widely-used mobile money platforms to offer credit that is made accessible to everyone. Unfortunately, these loans are offered at high-interest rates.

The ease of accessing loans in Kenya has greatly improved since Kenyans can now get credit directly to their mobile phones in minutes.

ADVERTISEMENT

“There’s an increase in let’s say financial-type institutions that are taking advantage of our population,” said Dr Njoroge at a digital financial services industry conference in Nairobi. “In a sense what has happened is there is an opportunity for some predators and they are preying on our population.”

Sadly, the ease of accessing credit has also increased the number of defaulters with a study by financial services consultancy Microsave indicating that in the last three years, 2.7 million Kenyans listed by the Credit Reference Bureau for defaulting loans.

Kenya Has a Become a Test Lab for Lending Platforms

Dr Njoroge said he abhorred the fact that Kenya is being used as a ‘guinea pig’ for new technology by foreign firms.

“What I think is worrisome is a lot of products that are coming in a sort of a fly-by-night operation and you only hear about it because somebody gets burned,” he said adding that these fintech startups are exposing Kenyans to risks hence the need to regulate the space.

Currently, the Financial Markets Conduct Bill 2018, published by the Treasury, proposes the creation of a Financial Markets Conduct Authority to regulate access to credit. It is, however, not clear if the regulation includes mobile lending apps as well.

In addition, the Bill has been criticised for being a threat to the CBK by overlapping with duties already being carried out by other government entities.

It is also unclear whether digital lenders are covered by the cap on interest rates introduced in 2016.

In light of the uncertainty surrounding the regulation of fintech lenders, the exploitation of Kenyans, who pay high-interest rates to receive quick loans, will continue.

RELATED; Financial Markets Conduct Bill 2018 a threat to CBK – Governor Njoroge


Previous Post

Kenya Ports Authority suspends MD Mturi Wairi over ineffectiveness

Next Post

U.S Commerce secretary scheduled to visit Kenya in June

Related Posts

KCB 2

Explainer: Why Your Company Needs a Balance Sheet

December 4, 2023
Equity Group CEO James Mwangi.

Equity Group Completes Acquisition of Rwandan Bank

December 2, 2023

Bigstore Secures Funding, Expands eCommerce Services

December 2, 2023

Kenya’s Inflation Rate Dropped Marginally in November

December 1, 2023

Bamburi Discontinues Ordinary Portland Cement, Pushes Greener Products

December 1, 2023

African Experts Call for New Paradigm to Unlock Methane Action Financing

November 30, 2023

Kenya Signs Food MoU, Targets to Cut Imports by US$200M Per Year

November 30, 2023

Diaspora Capitalizes on Weak Shilling with Real Estate

December 1, 2023
Load More
Next Post
US commerce secretary Wilbur Ross

U.S Commerce secretary scheduled to visit Kenya in June

Follow Us

  • 167.4k Followers
  • 4.1k Subscribers
  • 1.2k Followers

WhatsApp

Subscribe

Telegram  

Subscribe

Podcasts

Featured

No Content Available

About Us

We are a leading integrated digital content platform providing in-depth business and financial news across Sub-Saharan Africa & the globe.

Contact Us

Kenyan Wall Street
Email: [email protected]
Website: www.kenyanwallstreet.com

Disclaimer

The information contained in this website is for general information purposes only.
Read more..

  • Advertise with Us

Copyright 2023. The Kenyan Wall Street LTD. All Rights Reserved.

No Result
View All Result
  • Home
  • News
    • Kenyan News
    • African News
    • Global News
  • Business
    • Agriculture
    • Aviation
    • Banking
    • Energy
    • Infrastructure
    • Insurance
    • Investment
    • Manufacturing
    • Markets
    • Public Policy
    • Real Estate
    • Startups
    • Technology
  • Podcast
  • Videos
  • Events

Copyright 2023. The Kenyan Wall Street LTD. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In