This archive report was first published on 8 June 2020.
Kenya's digital lenders have been put on notice by the Digital Lenders Kenya Association (DLAK) over their unscrupulous methods of debt collection. The association has condemned the practices of two loan app operators, Opesa and Okash, which have been accused of poor shaming practices of debt collection.
According to DLAK Chairman Robert Masinde, the association has taken note of the continued reports about Opesa and Okash's behavior, which involves reaching out to contacts on the customer's phone book to try and get them to pay back a loan. 'We condemn this illegal and morally questionable behavior and urge Okash and Opesa to cease such practices,' Masinde said.
DLAK members, including Tala, Alternative Circle, and Zenka Finance, have also condemned the behavior, citing that it goes against Kenyan data protection laws and reeks of indignity. The association has urged the lenders to respect the dignity and consumer rights of their customers.
Central Bank of Kenya Governor Patrick Njoroge has also been critical of digital lenders, insisting that they must be regulated to bring order in the industry. Njoroge has argued that the continued existence of digital lenders poses a major risk to the country's financial system.
SEE ALSO: Sniff out dirty cash in safe boxes, CBK orders lenders
Recently, CBK withdrew approvals granted to the lenders to credit reference bureaus (CRBs) as third-party credit information providers, leaving them as digital shylocks with little means of determining the credit-worthiness of borrowers.
