Kenya's digital lending sector, home to approximately 45 mobile-based platforms, faces growing scrutiny over unregulated practices and exorbitant fees. These services, which offer rapid loans to individuals and small businesses, have expanded significantly without comprehensive oversight.
Members of parliament are urging the Central Bank of Kenya (CBK) and the Communications Authority (CA) to establish regulatory frameworks to cap lending charges. A parliamentary committee report mandates that both agencies audit unregulated fintech lenders operating via mobile platforms and enforce existing money-lending regulations within six months.
The push for oversight stems from concerns over market dominance and limited competition. In 2018, the CA investigated Safaricom's market position, alleging anti-competitive behavior in the telecom sector. Committee members argue that regulatory gaps enable monopolistic practices, undermining fair competition.
To address this, the committee recommends the CA submit bi-annual reports to parliament detailing industry competition levels and identifying dominant market players. The proposals aim to create transparency and ensure equitable conditions for digital credit providers.
