• Latest
  • All
  • How To
finance

Digital Lenders to Cut Access to Loans to Customers with Multiple Online Credit Apps

June 28, 2019
Weak Checks Make Kenyan Digital Lenders Easy Targets for Criminals

Weak Checks Make Kenyan Digital Lenders Easy Targets for Criminals

July 8, 2025
Open TV

Open TV Brings Fast and Ad-Free IPTV to Android

July 7, 2025
Microsoft

Laid-Off Microsoft Workers Told to Ask ChatGPT for Career Support

July 7, 2025
nairobi barricades

Live Barricades App Offers Relief to Stranded Nairobi Commuters on Saba Saba

July 7, 2025
DHgate Tablet Cases deals
Voter Verification Portal Offline Indefinitely for System Maintenance

IEBC Portal Shutdown for Undisclosed Maintenance Period

July 7, 2025
Infinix Note 50 Pro x Java House Collab

Infinix Teams Up with Java House to Launch Note 50 Pro Series

July 4, 2025
Instagram threads

Meta Adds Direct Messages to Instagram Threads

July 7, 2025
Infinix Hot 60i Pre-order

Infinix Hot 60i Now Available for Pre-Order in Kenya

July 4, 2025
Windows

Windows Loses Ground as Users Switch to Mac, Linux, and Mobile

July 7, 2025
Microsoft

Microsoft Slashes 9,100 Jobs in Biggest Layoffs Since 2023

July 4, 2025
NASA

NASA Brings Space Missions to Netflix at No Extra Cost

July 3, 2025
ios 26-facetime

iOS 26 May Pause Video if You Start Undressing on FaceTime

July 3, 2025
Techweez | Tech News, Reviews, Deals, Tips and How To
  • News
  • Entertainment
  • Reviews
  • Features
  • Editorial
No Result
View All Result
Techweez | Tech News, Reviews, Deals, Tips and How To
  • News
  • Entertainment
  • Reviews
  • Features
  • Editorial
No Result
View All Result
Techweez | Tech News, Reviews, Deals, Tips and How To
No Result
View All Result

Digital Lenders to Cut Access to Loans to Customers with Multiple Online Credit Apps

Kenn Abuya by Kenn Abuya
June 28, 2019
in News
Reading Time: 3 mins read
251
0
finance

The mobile lending space in Kenya has grown significantly. Every other month or week, a new mobile loan app finds its way into the market, and these apps have a healthy stream of customers because they offer a service that is traditionally very difficult to access, owing to the rigidity of banking institutions that require a ton of paperwork, and the difficulty of accessing saccos that have their set of stringent rules.

These cases have done a good job laying the foundation for lending firms, which use digital services (hence their ‘fintech’ branding) to offer loans to customers. We all know the outcome of this development: while some people have leveraged these services to grow themselves, others have found themselves indebted to these firms in scenarios they could have avoided.

Admittedly, and as we have discussed before, the mobile lending space is chaotic. Arguably all participating apps are not bound to finance or data protection regulations, a setback that has allowed them to expand their trade while harming the people they are supposed to help.

After all, aren’t these businesses out here to make a profit? – and what is the quickest way to rake appreciable returns besides sharking loans to unsuspecting customers, and subject them to astronomical interest rates and while at it, ignore a bunch of financial regulations?

These are issues that have been raised by customers and industry insiders and regulators. The Central Bank of Kenya (CBK), for instance, has been under the spotlight for failing to recognize this problem in time. In its defense, the CBK’s legal mandate to regulate mobile loan apps is trivial at best, and the growth of these services has surpassed the speed at which regulations are designed to manage a fairly infant market.

However, all is not bleak because towards the end of 2018, the institution started lobbying for tougher policing of digital lenders based on the National Payment Systems Act. At that time, the CBK revealed that up to more 6.5 million Kenyans were using online loan apps, and used those funds to feed their addiction to another ‘vice’ – betting.

In the spirit of regulating the market, twelve lending apps have since joined what is called the Digital Lenders Association of Kenya (DLAK). The institution, whose members include the likes of Tala and Alternative Circle’s Shika app (other popular companies such as Branch and Okash are suspiciously missing) has been busy in the last couple of days, following an announcement by the CBK that it was doubling down on online lenders to adhere to some housekeeping rules.

To begin with, DLAK proposes that people who have more than loan app in their smart devices should not access loans. This suggestion is outrageous as it sounds, will likely be shot down because it will put small players out of business.

Kenyans with more than one mobile lending App would unlikely access loans from multiple lenders if a proposal by Digital Lenders Association of Kenya (DLAK) sails through. pic.twitter.com/w9fmRA7AQJ

— Metropol TV Kenya (@MetropolTVKE) June 28, 2019

Secondly, and this has already been signed, is a code of conduct that will limit initial loans to KES 4000 for customers who have no borrowing history. These groups include people who have probably never accessed online loans before – although we are skeptical, they can get access to that amount considering limits are based on transactions and repayments histories.

DLAK is also proposing an in-app access of digital borrowing patterns to customers. The information is often used by lenders to determine loan limits.

There is a clause that promises to seal any data privacy abuses. The promise is entirely dependent on the progression or lack thereof of two data protection bills at the Senate and Parliament.

DLAK’s code of conduct is being examined and edited as of this writing. The organization says it will communicate its decision in two months’ time when we assume the proposal will be signed to catapult the space into a more organized ecosystem.

Tags: CBKMobile Loans
SendShare147Tweet92
Kenn Abuya

Kenn Abuya

Kenn Abuya is a friend of technology, with bias in enterprise and mobile tech. Share your thoughts, tips and hate mail at [email protected]

Related Posts

Weak Checks Make Kenyan Digital Lenders Easy Targets for Criminals

Weak Checks Make Kenyan Digital Lenders Easy Targets for Criminals

July 8, 2025
Unified Payment Interface

CBK’s New Fast Payment System Plan Could Rival M-Pesa

June 24, 2025
kenya-parliament

Parliament Invites Public Feedback on Virtual Asset Bill 2025

May 30, 2025
features of the Kenya's Virtual Asset Bill

Kenya Moves to Regulate Crypto Industry with the Virtual Asset Bill 2025

May 30, 2025
US Dollar to Kenyan Shilling Exchange Rate

US Dollar to Kenyan Shilling Conversion Guide 2025

March 14, 2025
new licensed digital credit providers kenya

Kenya Tightens Grip on Digital Lenders With New CBK Regulations

March 4, 2025

Latest

Weak Checks Make Kenyan Digital Lenders Easy Targets for Criminals

Weak Checks Make Kenyan Digital Lenders Easy Targets for Criminals

July 8, 2025
Open TV

Open TV Brings Fast and Ad-Free IPTV to Android

July 7, 2025
Microsoft

Laid-Off Microsoft Workers Told to Ask ChatGPT for Career Support

July 7, 2025
nairobi barricades

Live Barricades App Offers Relief to Stranded Nairobi Commuters on Saba Saba

July 7, 2025
Voter Verification Portal Offline Indefinitely for System Maintenance

IEBC Portal Shutdown for Undisclosed Maintenance Period

July 7, 2025
Infinix Note 50 Pro x Java House Collab

Infinix Teams Up with Java House to Launch Note 50 Pro Series

July 4, 2025

Best devices

budget smartwatches 2025

Best Budget Smartwatches To Buy in Kenya 2025

February 13, 2025

Best Infinix Smartphones To Buy in Kenya 2024

February 13, 2025

Best Laptops for Battery Life in 2024

August 21, 2024

Best “Battery Warrior” Smartphones To Buy in 2024

August 22, 2024

Weak Checks Make Kenyan Digital Lenders Easy Targets for Criminals

July 8, 2025

Open TV Brings Fast and Ad-Free IPTV to Android

July 7, 2025

Techweez is a fast growing influential source of technology news, reviews and analysis by leading tech geeks in the industry.

Follow Us

Editorials

Abductions and Arrests! Kenyan Government’s Fear and Hate of X Users Makes No Sense

Actors and Film Crews Are Worried About Veo 3 Taking Their Jobs

Samsung QLED TVs Now Officially Certified for Real Quantum Dot Technology

Trump’s Tariffs Will Be the End of Affordable Tech

5 Ways to Prep Your Tech for Resale

The Weaponization of PDFs: How Cybercriminals Are Exploiting a Trusted Format

More News

Meta Adds Direct Messages to Instagram Threads

Infinix Hot 60i Now Available for Pre-Order in Kenya

Windows Loses Ground as Users Switch to Mac, Linux, and Mobile

Microsoft Slashes 9,100 Jobs in Biggest Layoffs Since 2023

NASA Brings Space Missions to Netflix at No Extra Cost

iOS 26 May Pause Video if You Start Undressing on FaceTime

  • Terms Of Use
  • Techweez Brand
  • Privacy & Policy
  • Contact Us

© 2024 Techweez - Palahala Media Group may earn a commission when you buy through links on our sites.
A Palahala Media Group Brand. All rights reserved.
.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Techweez | Tech News, Reviews, Deals, Tips and How To
Crunchy Cookies 🍪 Ahead!

Hey there! Just a heads-up: we're big fans of cookies - both the digital and edible kind! 🍪 We use our cookies and some from third parties to ensure your browsing experience on our site is smooth sailing and secure.

 

But wait, there's more! We also use cookies to gather stats and insights on how you navigate our site. It's like getting a behind-the-scenes peek at your digital adventures!

 

Don't worry, you're in control. You can adjust your cookie settings anytime to suit your preferences. Feeling curious? Dive into our Privacy Policy for all the juicy details. Happy browsing! 🚀

Functional Always active
Listen, this legal stuff is about as exciting as watching paint dry. But it basically says we only use your stuff for what you asked us to do, and nobody else gets to peek!
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
It's those sneaky cookie crumbs websites leave behind to count visitors, like counting ants at a picnic! Totally harmless, just for fun facts. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
Hey there! Just letting you know we use some fancy gizmos to remember your preferences. This way, we can show you ads that are, well, not completely bananas.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
Make cookies
{title} {title} {title}
Techweez | Tech News, Reviews, Deals, Tips and How To
Crunchy Cookies 🍪 Ahead!
To provide the best experiences, we use technologies like cookies to store and/or access device information. Consenting to these technologies will allow us to process data such as browsing behavior or unique IDs on this site. Not consenting or withdrawing consent, may adversely affect certain features and functions.
Functional Always active
Listen, this legal stuff is about as exciting as watching paint dry. But it basically says we only use your stuff for what you asked us to do, and nobody else gets to peek!
Preferences
The technical storage or access is necessary for the legitimate purpose of storing preferences that are not requested by the subscriber or user.
Statistics
It's those sneaky cookie crumbs websites leave behind to count visitors, like counting ants at a picnic! Totally harmless, just for fun facts. The technical storage or access that is used exclusively for anonymous statistical purposes. Without a subpoena, voluntary compliance on the part of your Internet Service Provider, or additional records from a third party, information stored or retrieved for this purpose alone cannot usually be used to identify you.
Marketing
Hey there! Just letting you know we use some fancy gizmos to remember your preferences. This way, we can show you ads that are, well, not completely bananas.
Manage options Manage services Manage {vendor_count} vendors Read more about these purposes
Make cookies
{title} {title} {title}
No Result
View All Result
  • News
  • Reviews
  • Features
  • Editorial
  • Automotive
  • Entertainment

© 2024 Techweez - Palahala Media Group may earn a commission when you buy through links on our sites.
A Palahala Media Group Brand. All rights reserved.
.