CBK Governor Patrick Njoroge on rogue digital mobile lenders.
CBK Governor Patrick Njoroge on rogue digital mobile lenders. PHOTO | STAR

Tala, Branch, Okash, Zenka and Okolea among other digital mobile lenders Central Bank of Kenya(CBK) plan to kick them out after public outcry over misuse of data.

The Central Bank has begun amending the law to regulate "exploitative, rogue and crazy" digital mobile lenders.

CBK Governor Patrick Njoroge said they have submitted amendments to the Central Bank Act to enable it to regulate the digital lenders that have been accused of exploiting their customers.

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“We have noted concerns on digital lenders on borrower indebtedness, financial integrity and consumer protection. Their rates are crazy and the way they deal with their customers is a concern,” Njoroge said.

Speaking at the Senate ad hoc Committee, the Governor said Covid-19  measures the regulator has taken will make the economy afloat.

The measures come after Governor Njoroge blocked lenders from forwarding the names of their loan defaulters to the Credit Reference Bureaus.

The CBK said the move was a result of the public outcry over widespread misuse of the credit information-sharing mechanism.

“We have more than 100 digital lenders, and we don’t know the source of their money. Some of them could be laundering money and that is why we want to regulate them."

“We have been working on the amendments, and we will regulate these entities the right way. They won’t be regulated like big banks but customers should expect to be treated with dignity,” he said.

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