In a move to engage the regulators ahead of planned regulation, Kenyan digital lenders have formed a lobby group, the Digital Lenders Association of Kenya (DLAK) consisting of 12 members. The digital lenders have signed on a code of conduct that focuses on customer protection, security, responsible lending and customer service.
The central bank governor has voiced his concern about the lack of rules in the mobile lending sector. Dr Njoroge likened the digital lenders to Shylocks and blamed them for exploiting desperate Kenyan borrowers.
On self-regulation the governor has previously mentioned that there is no such place for it, stating that the danger relates to the conflict of interest.
“This is why you need to have regulation based on specific principles most important being the protection of Wanjiku” he added
Kenyan legislatures have also raised concerns claiming that some borrowers are struggling with heavy debt from the mobile lenders.
Central Bank, however, regulates the mobile-lending apps linked to commercial banks, however, other digital lenders are unregulated.