This archive report was first published on 16 July 2019.
On July 16, 2019, Central Bank of Kenya (CBK) governor Patrick Njoroge announced plans to launch a service informing borrowers whether a mobile lender has been approved or not.
The move is aimed at protecting customers from unregulated credit-only institutions which the CBK boss indicated could be exploiting Kenyans with high interest rates.
Speaking during the opening of the Afro-Asia Fintech Festival in Nairobi, Njoroge stated the regulator was planning to launch a service that will enable borrowers to know the approval status of the mobile loan apps when applying for loans.
“We want to ensure that the consumer is not being taken advantage of, and that the client’s information is secure,” he said.
The service is expected to make it possible for customers to know whether a mobile lender is approved or not, protecting cash-hungry borrowers from unregulated credit-only institutions.
Some of the mobile apps that have already received the stamp of approval from the regulator include Safaricom's M-shwari and Fuliza, KCB-Mpesa, Stawi for small and medium-sized enterprises (SMEs), and a number of online financial products offered by commercial banks.
Those who are reportedly yet to receive the regulator's approval include Tala, MyCredit, Okash, Branch, and Okolea, to mention a few.
