The Kenyan economy has witnessed a sudden upsurge in the number of mobile money lending firms operating in the country.
There are numerous claims that most of these lenders operate as shylocks. This made the CBK Governor Njoroge talk tough regarding these firms. He reiterated that it was high time the CBK put these lending firms under its radar.
Digital Lenders Association, on the other hand, has opposed this move and said that they prefer to regulate themselves. The big question is, what they are afraid of? Your guess is as good as mine.
Most Kenyans are now financially starved as some of these mobile money lenders charge their customers on the so-called transaction fee, interest, or penalties.
A case in point is a mobile app lender who charges 2% of the principal amount on a daily basis in case the borrower fails to pay by the due date. So no matter how the borrower keeps repaying the loan, it will keep on increasing.
The exploitation claim has caused so much stress, depression, and psychological pain to the borrowers with some ending up taking their lives.
It is now high time that the government through CBK takes the bull by its horns and protect the helpless citizens from these mobile money lenders.