This archive report was first published on 13 March 2020.
MP Antony Oluoch has sounded the alarm on the dangers of mobile money lending, calling for a probe into the industry.
According to Oluoch, lenders such as Tala, Mshwari, Fuliza, KCB M-Pesa, Absa, Branch, Shika, Ipesa, Berry, Okash, and Zenka operate outside of regulations, preying on vulnerable Kenyans.
He cited a recent report by the Credit Reference Bureau (CRB) showing over 2.7 million Kenyans have been blacklisted for defaulting on loans.
“The digital borrowing has become a social menace responsible for suicides, divorces, family break-ups, and increased listing of loan defaulters by the CRB,” Oluoch said in his petition.
He also accused mobile lenders of exploitative interest rates, with some as high as 19 percent, far above the 13 percent recommended by the Central Bank.
Oluoch wants the National Assembly to direct the Central Bank of Kenya and the Communication Authority of Kenya to audit digital money lending, including provisions for full disclosure of upfront charges and interest rates.
His petition was received by Speaker Justin Muturi and committed to the Finance Committee.
