Transsnet Financial: Shady Chinese Company Desperately Bribing CBK Officials To License "Palmpay" Loan App In Kenya

PHOTO CAPTION: Transsnet Financial that owns PalmPay A trusted source has tipped to this blog that a shady Chinese commercial company is desperately trying to bribe operatives at the Central Bank of Kenya to license one of their products, "Palmpay" in Kenya. Transsnet Financial , which owns BoomPlay Music, is a Hong Kong-based venture between Transsion Holdings and NetEase, which acts as an investment vehicle for finance brands operating in Africa.

Palmpay is a digital wallet that offers a package of mobile-based financial services such as no-fee payment options, bill pay, rewards programs, and discounted airtime.

It first launched in Nigeria in November 2019. "Hi, Nyakundi, Transsnet Financial which owns Palmpay is trying to get licensed by CBK to operate as a mobile loan lender in Kenya and which has roots and links to Nigeria and some Chinese investors. They have been trying to bribe their way to get a license from CBK. Ebu angalia hii maneno and ask around. Hii kampuni Transsnet also houses Boomplay. The CEO is Ronald Leiyan," the source writes.

In March 2022, CBK gazetted the Digital Credit Providers' regulations and announced that mobile phone lenders had six months to register under new rules that bar the firms from sharing borrowers’ information with third parties and require them to seek their approval for interest on loans.

Digital credit providers (DCPs) are also required to disclose their sources of funds and provide evidence of the same after a law meant to regulate the sector came into effect.

CBK Governor Patrick Njoroge noted that the move is meant to ensure that lenders are not engaging in financial crimes like money laundering.

They were previously only required to register the businesses to begin operations in the country.