Kenyans have greatly Suffered in the hands of the digital Lenders due to the high interest rates being charged by the companies.
Besides the high interest rates there has been great concern on the companies contacting the friends and relatives of the loans defaulters.
When the mobile loaning apps were introduced in the country, most young people borrowed expecting that they will go away without paying.
Lack of proper laws to regulate the digital Lenders has resulted to various malpractices amongst the companies.
Kenyans have a reason to smile as the government has stepped in to regulate and license the digital lending business.
According to a report by Business Daily, digital mobile lenders will have six months to be licensed by the Central Bank of Kenya (CBK) if Parliament adopts a proposed law that will see the regulator control their products, management and shar ing of borrower information.
A key aim of the government-backed Central Bank of Kenya (Amendment) Bill, 2021, which seeks to empower the banking regulator to supervise digital lenders for the first time, is to curb the steep digital lending rates that have plunged many borrowers into debts.
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