• About Hisa Technologies
  • Advertise
  • Careers
  • Contact Us
  • Estate Cloud
Saturday, July 2, 2022
  • Login
  • Register
No Result
View All Result
NEWSLETTER
Kenyan Wallstreet
  • Home
  • News
    • Kenyan News
    • African News
    • Global News
  • Business
    • Agriculture
    • Banking
    • Aviation
    • Energy
    • Manufacturing
    • Markets
    • Personal Finance
    • Technology
    • Startups
  • Lifestyle
  • Podcast
  • Videos
  • Events
  • Blockchain & Digital Currencies
  • Calendar
  • Home
  • News
    • Kenyan News
    • African News
    • Global News
  • Business
    • Agriculture
    • Banking
    • Aviation
    • Energy
    • Manufacturing
    • Markets
    • Personal Finance
    • Technology
    • Startups
  • Lifestyle
  • Podcast
  • Videos
  • Events
  • Blockchain & Digital Currencies
  • Calendar
No Result
View All Result
Kenyan Wallstreet
No Result
View All Result

Mobile Lending Sector on the Spotlight as Number of Blacklisted Borrowers Hits 500,000

Angeline MbogobyAngeline Mbogo
June 8, 2018
in Kenyan News
Reading Time: 2 mins read

Data from the Transunion Credit Reference Bureau has put the mobile lending sector on the spotlight after revealing that 500,000 people are at the present blacklisted with Credit Reference Bureaus (CRBs) compared to 150,000 three years ago.

The increasing number of defaulters has arisen because of the over 50 mobile lending apps accessible to Kenyans. People that are blacklisted borrow from mobile and online lending platforms such as M-Shwari, Tala, and KCB M-Pesa.

This comes less than a week after Central Bank of Kenya Governor called for the regularisation of the fintech lenders saying they are taking advantage of the population.

ADVERTISEMENT

“In a sense what has happened is there is an opportunity for some predators and they are preying on our population.” Dr Njoroge said at a digital financial services industry conference in Nairobi.

Lack of Knowledge on the Repercussions of Defaulting

According to Transunion chief executive Billy Owino, most people are being blacklisted because they are unaware that defaulting on a loan of as little as Sh500 can get one blacklisted.

“Most of the borrowers do not know how they got blacklisted. We get like 200 calls daily from individuals in this category asking how they ended up in the blacklist,” he said adding that lending platforms also fail to completely use information from CRBs before giving out loans.

In addition, Mr Owino said lenders do not take time to investigate the loans their borrowers have on other platforms.

“There are over 50 mobile and online lending platforms in Kenya today. Take an example where an individual borrows from Tala, M-Shwari and other 10 platforms in a single day. To get a loan from one platform takes like three minutes,” he said.

“So they end up getting all the money at once from the 10 platforms. If these platforms checked the borrowing habits of that lender in the data provided by CRBs, they would have ignored him when they noticed that he approached many of them.”

Basically, a borrower is given 30 days to repay a loan. If the loan is not repaid by the end of that period, the lender submits the borrower’s details to the CRB for blacklisting. That means that the borrower cannot access further credit until they have repaid the unpaid loan.

However, even after paying back the loan, the debtor remains on CRBs list with a low credit score for seven years. Within that the duration, banks cannot offer the debtor any loan.

RELATED; CBK Governor Advocates For Regularisation of Fintech Lenders


Hisa App Hisa App Hisa App
Previous Post

Stephen Gitagama Confirmed Nation Media Group CEO

Next Post

More than 1.3 Million File 2017 Returns Ahead of June 30th Deadline

Related Posts

Standard Chartered Women in Tech

Announced; The Top 10 Startups Joining Standard Chartered’s Women in Tech Incubator

July 2, 2022
GoK Sets August 6 as Deadline for Importing Maize under New Tax Waivers

GoK Sets August 6 as Deadline for Importing Maize under New Tax Waivers

July 1, 2022

Mobile Phone Prices to Increase after New 10% Excise Duty

July 1, 2022

Maize Flour Prices to Decline by Ksh 2 as Govt Levies Relief

July 1, 2022

Relief as Government Cuts Taxes on Cooking Gas by 50%

July 1, 2022

Further Increase in Food Prices Pushes Kenya’s Inflation Rate to a 5-Year High of 7.9%

July 1, 2022

Jambojet Fetches KSh11 Million from Cargo Operations in Goma

June 30, 2022

World Bank Extends KSh390 Million Facility for Solar Projects in Kenya

June 30, 2022
Load More
Next Post

More than 1.3 Million File 2017 Returns Ahead of June 30th Deadline

ADVERTISEMENT

Follow Us

  • 139.2k Followers
  • 2.4k Subscribers
  • 1.1k Followers

WhatsApp

Subscribe

Telegram  

Subscribe

Podcasts

Upcoming Events

Jul
11
Mon
all-day British American Tobacco Uganda ...
British American Tobacco Uganda ...
Jul 11 all-day
Payment of recommended dividend of Ushs 209.00
Jul
15
Fri
all-day Nairobi Securities Exchange Divi...
Nairobi Securities Exchange Divi...
Jul 15 all-day
 
Jul
22
Fri
all-day Umeme Plc Dividend Payment
Umeme Plc Dividend Payment
Jul 22 all-day
Umeme Plc Dividend Payment of Ush 54.10 per share
1:35 pm Umeme Limited Dividend Payment
Umeme Limited Dividend Payment
Jul 22 @ 1:35 pm – 2:35 pm
 
Jul
24
Sun
all-day Total Energies Book Closure
Total Energies Book Closure
Jul 24 all-day
 
Jul
25
Mon
all-day Jubilee Holdings Dividend Payment
Jubilee Holdings Dividend Payment
Jul 25 all-day
 
View Calendar
Add
  • Add to Timely Calendar
  • Add to Google
  • Add to Outlook
  • Add to Apple Calendar
  • Add to other calendar
  • Export to XML

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. Kenyanwallstreet.com is a property of Hisa Technologies Ltd, a financial media & software company.

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..

  • About Hisa Technologies
  • Advertise
  • Careers
  • Contact Us
  • Estate Cloud

Copyright 2021. Hisa Technologies. 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 2021. Hisa Technologies. All Rights Reserved.

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

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

Log In