This archive report was first published on 8 June 2020.
June 8, 2020
The Digital Lenders Association of Kenya (DLAK) has taken a firm stance against debt shaming practices in the digital lending industry. In a statement, the association's Chairperson, Robert Masinde, distanced DLAK from two firms, Opesa and Okash, that have been accused of harassing Kenyans over debt collection.
According to Masinde, DLAK members adhere to a code of conduct that stipulates ethical and consumer protection standards. He emphasized that the association condemns the behavior of Opesa and Okash, which involves reaching out to contacts on a customer's phone book without consent in an attempt to collect debt.
“Not only does this behavior go against Kenyan data protection laws, but it reeks of indignity. By reaching out to a customer’s contact list, Opesa and Okash rob the individual of basic dignity and consumer rights,” said Masinde.
DLAK has also offered to advise non-members on improving their debt collection approach towards more ethical business practices. The association has urged Opesa and Okash to cease such practices, which have led to blanket criticism of the industry.
As part of the economic measures introduced to help Kenyans weather the COVID-19 pandemic, the government suspended the blacklisting of Kenyans at Credit Reference Bureaus (CRBs) temporarily. However, DLAK has asked the government to reconsider the ban, saying it denies underserved Kenyans access to digital lending services.
DLAK members, including Tala, Alternative Circle, and Zenka Finance, have condemned the behavior of Opesa and Okash and have urged them to cease such practices.
