DLAK issues 6 Proposals Before CBK Regulates Loan Apps

Digital Lenders Association of Kenya (DLAK) is calling for an open, transparent and collaborative policymaking in order to serve the interests of all Kenyans.

The digital lenders umbrella body  issued this statement after seeing that the Central Bank's intention to regulate loan apps is gaining momentum.

DLAK has recommendations to make though before the regulation by CBK comes in ,that if the Bill in parliament becomes law.

The body made up of the most popular digital lenders including Tala,Branch, Stawika, Zenka, Shika among others proposes the following;

1.Leveraging existing microfinance regulatory frameworks, the Central Bank of Kenya (CBK) should be granted supervisory authority over the digital lending industry.

2.Regulation should build off of the DLAK Code of Conduct in order to promote fair, transparent, and honest treatment of customers in all facets of lending, including debt collection.

3.Responsible lenders must provide transparent and fair market-based pricing with no hidden or punitive fees, such as the endless accrual of interest on delinquent balances

4.Credit reporting should include near real-time negative and positive data in order to avoid over-indebtedness and help borrowers build a positive credit history that they may leverage for other services.

5.Customer data should be safeguarded and used only for transparent, proper purposes.

6.Kenya should remain at the leading-edge of digital finance and inclusion through regulation that fosters the continued development and adoption of digital and machine learning technologies.

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