Thursday, May 07, 2020

CBK Propose Law Amendments To Control Exploitative Loan Apps

    May 07, 2020   No comments

CBK Governor Dr Patrick Njoroge
CBK Governor Dr Patrick Njoroge 

The Central Bank has taken another move to ensure that it gets the powers to control exploitative digital lenders in the country.

CBK Governor Dr Patrick Njoroge, said Thursday, they have proposed amendments to the Central Bank Act to gain the necessary rights and powers to handle the rogue lenders well..

In April CBK stopped digital lenders and Credit-Only companies from accessing and submitting borrowers credit information to the Credit Reference Bureaus (CRB)

The move was triggered by public outcry that the lenders are charging exorbitant interest rate, have poor customer care services among other issues.

The source of their money is questionable and maybe practising money laundering therefore strict measures to control the lenders must be in place soon.

Digital lenders topped the list of lenders who submitted the largest number of loan defaulters with less than ksh 1000 loans to the three licensed CRBs. This is what the governor termed as misusing the Credit Information Sharing system.


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Mwabaya Katana

About Mwabaya Katana

Mwabaya Katana is a Finance Online Researcher and Writer.He is the founder of 'Loans Kenya' Blog.

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