Rogue Digital Lenders to Be Tamed By the Competition Authority

A sector study is to be carried out on the regulated and unregulated digital credit markets by the Competition Authority of Kenya.

The main reason for such an action is the existent of numerous lenders who have a habit of luring savvy customers into their traps.

In the recent past, digital lenders have been accused of being unkind to customers by failing to disclose fully what their intentions are, engaging in illicit or rather unauthorized use of personal data and client’s records or even taking advantage of consumer laws which are weak.

Financed by Innovations for Poverty Action (IPA), the study seeks to identify and address potential consumer protection concerns that cover both formal and informal digital credit markets.

The size and nature of digital markets as well as the identification of potential consumer protection risks and ensuring that consumers are aware of all terms and conditions as well as product information before taking out a digital loan is to be established by the Competition Authority.

The CAK also aims to take a look into measures which can be taken to deal with fraud in the digital space, how to safeguard personal data and information as well as ensure consumers are protected across all the digital platforms.

A recent Gazette Notice signed by CAK’s Director-General, Wan’gombe Kariuki revealed that the organization plans to receive views from the public as well as receive oral and written submissions.