Digital and mobile money-lending apps in Kenya have been given until the end of September to either apply for an operating licence or cease operations.
Governor of the Central Bank of Kenya, Peter Njoroge, has stated that laws controlling the lenders will be gazetted later this month, implying that the government will regulate all of the applications.
For individuals who didn’t pay back the loans on time, they’ve been accused of predatory lending, excessive interest rates, and customer harassment.
Since early 2020, the government has prohibited digital lenders from reporting defaulters to credit bureaus, claiming that the corporations had abused the system.
These lenders are well-known in Kenya due to their quick loan processing.
It should be recalled that last week the Nigerian Government suspended the operations of six illegal money-lending platforms.
Digital and money-lending apps like GoCash, Okash, EasyCredit, Easi Moni, KashKash, and Speedy Choice were also shut down.
