• Latest
  • All
  • How To
The Data Protection Bill 2019 is Now Law. Here is What that Means for Kenyans

Digital Lenders Are Blatantly Abusing Data Protection Laws and They Don’t Care

June 4, 2021
Samsung QLED TVs

Samsung QLED TVs Now Officially Certified for Real Quantum Dot Technology

May 9, 2025
Apple Smart Glasses

Apple Is Making Its Own Chip for Smart Glasses Coming by 2027

May 9, 2025
Safaricom

Safaricom Breaks Barriers with $3B Milestone and Bold Ethiopia Play

May 9, 2025
Private Number calls

How to Handle Private Number Calls in Kenya

May 8, 2025
DHgate Tablet Cases deals
Kenya Power EV charging stations

Kenya Power Rolls Out 45 EV Charging Stations Across the Country

May 8, 2025
Bayobab

MTN’s Bayobab Connects Uganda and Kenya with New Fiber Route

May 8, 2025
Airtel Africa Starlink partnership

Starlink Is Expanding in Africa Through New Airtel Partnership

May 8, 2025
Android FreeType patch

Android May 2025 Security Update Fixes Critical FreeType Zero-Click Vulnerability

May 7, 2025
worldcoin kenya

Court Ruling Orders Worldcoin to Delete All Kenyan Biometric Records

May 7, 2025
smartphones-2024

Smartphone Market Recovers Slightly in Q1 2025 With Apple, Vivo Leading Gains

May 7, 2025
GTA 6 Trailer 2

GTA 6 Trailer 2: Rockstar Confirms Release Date and Dual Protagonists

May 7, 2025
YouTube Premium Duo

YouTube Now Lets Two People Share a Premium Plan

May 6, 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 Are Blatantly Abusing Data Protection Laws and They Don’t Care

Kenn Abuya by Kenn Abuya
June 4, 2021
in News
Reading Time: 3 mins read
254
0

There a ton of mobile lending apps out there; and they have thrived because the online lending space is unregulated, to say the least, and that the majority of Kenyans find themselves in a financial fix. These people are likely listed by the CRB, which means that they cannot access traditional banking institutions for loans.

The next stop? Seek the help of online loan sharks that masquerade as digital lenders. These are companies that have somehow managed to reap the benefits of their vices in the Kenyan space for a long time now, and having honed their craft, they continue to remain appealing to customers who seek their services.

READ MORE: Exploitative Loan Apps Deserve A Quick, Painful Death

Two things should be taken into account: first, these lenders never want to establish your creditworthiness – they will dish out a loan to you; and secondly, and since the leans are not secured, the interest rates are hilariously high with shorter (a max of two weeks) payment period. For instance, you can request for a KES 6000 loan and you will only receive KES 4000, and after a fortnight, you must clear that loan else you would have to endure pure harassment from these people, including them illegally accessing your addresses in a bid to shame you.

These issues have been raised by customers before, and regulators are not doing anything to protect customers. Ajua, the research firm that tracks business data to empower companies has revealed that digital lenders have doubled up on this kind of harassment for defaulters based on an analysis that was conducted for the 2021 Q1 period.

It gets worse: Ajua says that these lenders are deliberately ignoring data privacy laws that have since been put into force in an effort to recover their loans. They call random contacts using a defaulters contacts address (uploaded to them when setting up the loan apps), or go as far as tagging the defaulter’s profile on social media platforms.

The shaming tactics have heightened over the pandemic, a period which people have been trying to alleviate their financial constraints through loans.

Here are some testimonies:

I was working with a private company before corona face three lockdown, they threatened to use my profile photos in my social media accounts to create a group to raise money for me, to take money on my M-PESA account by force.

Too many phone calls from their agents even before the due date uncalled for penalties lack of confidentiality-contacting your contact list to probe you to pay.

The cases are against data protection laws, which are bundled under the Data protection Bill 2019 that went live in the same year.

According to Ajua’s Data Protection Officer John Walubengo, the laws were put in place to ensure that Kenyans are not subject to gross abuses as demonstrated by digital lenders’ loan recovery processes.

These laws enhance the rights of the consumers allowing them to exercise their rights to ownership of the personal data that enterprises collect about them. Such rights include but are not limited to the right to consents, right to be forgotten, right to data rectification, right to be informed of data breaches amongst others. – John Walubengo

It is not clear why Kenya’s data commissioner office has not picked up on these abuses to restore some sanity in the space, and why these lenders are blatantly ignoring the law that has been in practice for more than one year.

The risk of infringing on privacy across the board is growing by the day given the increased volume of data being collected by companies and advances in the technology for processing them. Mobile money lenders as well as other industries should be mindful of personal data and educate themselves on data privacy compliance to avoid running into any problems with the law. – Ajua

Tags: AjuaData Protection Bill 2019
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

World bank data protection act recommendations

World Bank Wants Law Changes to Ease Export of Kenyans Data

October 20, 2023
Kenya data privacy

Kenya to Host Data Protection 2024 General Assembly

May 16, 2023
Immaculate Kassait

Registration Charges for Data Controllers and Data Processors

July 18, 2022
Who is a Data Controller and Data Processor?

Who is a Data Controller and Data Processor?

July 18, 2022
Kenya Intros 1.5% Digital Tax for Online Sales, Effective January 2021

Regulations Under the Data Protection Act, 2019 Published for National Assembly Scrutiny

January 17, 2022

Fuliza Among the Most Preferred Credit Facilities in Kenya

December 3, 2021

Latest

Samsung QLED TVs

Samsung QLED TVs Now Officially Certified for Real Quantum Dot Technology

May 9, 2025
Apple Smart Glasses

Apple Is Making Its Own Chip for Smart Glasses Coming by 2027

May 9, 2025
Safaricom

Safaricom Breaks Barriers with $3B Milestone and Bold Ethiopia Play

May 9, 2025
Private Number calls

How to Handle Private Number Calls in Kenya

May 8, 2025
Kenya Power EV charging stations

Kenya Power Rolls Out 45 EV Charging Stations Across the Country

May 8, 2025
Bayobab

MTN’s Bayobab Connects Uganda and Kenya with New Fiber Route

May 8, 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

Samsung QLED TVs Now Officially Certified for Real Quantum Dot Technology

May 9, 2025

Apple Is Making Its Own Chip for Smart Glasses Coming by 2027

May 9, 2025

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

Follow Us

Editorials

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

Introducing A Brainbox Quiz: Techweez’s Monthly Trivia Night!

5 Most Reliable Virtual Dollar Card Providers in Nigeria

More News

Starlink Is Expanding in Africa Through New Airtel Partnership

Android May 2025 Security Update Fixes Critical FreeType Zero-Click Vulnerability

Court Ruling Orders Worldcoin to Delete All Kenyan Biometric Records

Smartphone Market Recovers Slightly in Q1 2025 With Apple, Vivo Leading Gains

GTA 6 Trailer 2: Rockstar Confirms Release Date and Dual Protagonists

YouTube Now Lets Two People Share a Premium Plan

  • 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.
.