“The main objective of the organization is to set ethical and professional standards in the industry, to collaborate with policy makers and other stakeholders in addressing industry issues, contribute to knowledge and learning and to drive the overall growth of the digital lending and fintech sector in line with the Economic Pillar of the Vision 2030, MTP III and the Big Four Agenda.”
The new association consists of some of the top digital lenders in kenya namely:
The digital lending space is currently unregulated which has resulted in Kenyans being exploited by the players which has seen huge interest rates being charged on mobile services being offered.
To counter this effect, the CBK has launched Stawi, a loan facility for micro, small, and medium enterprises in Kenya. Stawi, in partnership with 5 Kenyan banks, offers loans at only 9 percent per annum in comparison to some mobile lenders who charge up to 300% in interest rate in some cases.
Speaking on the needed regulation, the CBK governor, Patrick Njoroge has said:
“This is why you need to have regulation based on specific principles most important being the protection of Wanjiku.”
Very few lenders are however pushing for education in the space and instead focus on disbursing loans and growing their customer base according to Hilda Moraa, CEO, Pezesha, a platform that connects lenders and borrowers in Kenya.
“We need normalization and sanity in the credit space.” ~ Hilda Moraa, CEO, Pezesha.