This archive report was first published on 31 October 2019.
Kenya's mobile lending market has experienced rapid growth, with six out of ten people owning a smartphone and 30,000 apps accessible to smartphone owners.
However, the lack of a unified regulatory framework has led to concerns over hidden costs, data privacy, identity fraud, and high default rates for small loans.
Responding to these challenges, the Digital Lenders Association of Kenya (DLAK) has been established to promote self-regulation, ethics, and professionalism in the industry.
DLAK's Code of Conduct (CoC) aims to balance the interests of lenders and borrowers, ensuring fair and reasonable standard practices.
According to DLAK, the industry cannot wait for regulators to intervene, and players should be able to cater for the needs of customers without exposing them to adverse practices.
DLAK has proposed the preparation of a comprehensive White Paper about the phone-based money lending market and market players, to be followed by recommendations and best practices drawn from around the world.
Regulators are in discussions with DLAK and industry experts about the prerequisites needed to undertake this process.
Established in 2019, DLAK aims to promote a triple-bottom-line approach that recognizes the economic-social nexus of 'doing well by doing good.'
