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Relief to Kenyans Receiving Threats From Mobile Loan Companies as Government Takes Action

Many Kenyans owe digital lending companies loans with others defaulting them. The rise in digital loans across the country has been as a result of increased access to smartphones and internet. The mobile phone money transfers have also led to the rise of digital lending services. Digital loans have helped many Kenyans pay for emergencies, rents medication, fees, basic necessities among others. 

However, it has emerged that the increased digital lending across the country has pushed many people into defaulting debts. On the other hand, it has been established that the lending companies have been accessing people's private data and sharing it with debt collectors to use it in collecting their loans while making huge profits. 

The government through Kenyan Data Regulator is now carrying out an investigation on unspecified number of online lending companies as a result of sharing confidential data belonging to the borrowers. The companies are said to be sharing the data belonging to Kenyans who have not honored the debts to other people in pursuit of the defaulters. 

According to Immaculate Kassait who is the Data Protection Commissioner, the digital lending companies have breached the confidentiality of personal information which is illegal. She added that majority of the companies are engaging in "debt shaming" in order to push the defaulters into paying back the money. Some of the companies are also said to be giving threats to their borrowers. 

It will however be a relief to Kenyans as the digital lenders faces probe in order to protect the borrowers' data and use proper methods to claim their debts.

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Immaculate Kassait Kenyans


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