This archive report was first published on 5 September 2019.
Published on September 5, 2019, mobile loan apps in Kenya have become increasingly popular, offering easy access to credit for many citizens.
Linda Bonyo, founder of Lawyers Hub Kenya, emphasized the need for mobile loan apps to prioritize consumer data protection.
She noted that some terms and conditions on these apps are lengthy and often ignored by users who simply click 'I agree' to borrow money quickly.
According to a report, over 500,000 Kenyans are currently listed on the Credit Reference Bureau (CRB) blacklist, a significant increase from three years ago.
Belgut MP Nelson Koech proposed the scrapping of the CRB listing law, citing its stifling effect on youth employment.
However, Sam Omukoko, CEO of Metropol Credit Reference Bureau, argued that government employers require CRB clearance certificates in accordance with Chapter 6 of the Constitution.
Omukoko explained that mobile loans have enabled Kenyans to access credit easily, with lenders providing funds on the understanding that they will be repaid.
He noted that defaulting on loans results in blacklisting, but this does not necessarily mean that individuals will be denied credit in the future.
Omukoko also raised concerns about data protection laws, citing cases of identity theft where personal details are stolen and used to obtain credit.
He proposed the use of biometrics as a security measure for accessing mobile loan facilities.
The Kenyan Government has yet to establish proper data protection mechanisms, with the Data Protection Bill still pending in Parliament.
Experts, including Ivan Mbowa of the Digital Lenders Board and Kevin Mwangi of Amana Capital, emphasized the need for digital lenders to uphold high standards and for consumers to use loans responsibly.
