How is M-CREDIT loan app regulated? #
NAIROBI, Kenya, October 5 – The Office of the Data Protection Commission (ODPC) notified the Kenyan public that it was conducting preliminary documentary assessment and audit on 40 Digital Credit Providers (DCPs) whose practices regarding the processing of personal data had been raised to the Data Commissioner as complaints by various members of the public. As of 30th September 2022, ODPC had received 1,030 complaints, the office admitted 555 of these cases including 299 which were on Digital Lenders, representing 54 percent of all cases admitted. M-CREDIT was one of the 40 mobile loan app providers who during the audit process were required to provide the Office of the ODPC with requisite documents by October 18, 2022 failure to which they will have been deemed to have failed to cooperate with the Office which is an offence under Section 61 of the Act. As use of mobile loan apps grew in Kenya, there were calls by the public about their licensing and oversight. This was because a rising number of mobile loan apps in Kenya were accused of engaging in predatory practices such as the high cost of loans, unethical debt collection practices, and the abuse of personal information. On March 21, 2022, CBK announced the publication of the Regulations on March 18. They provide for the licensing and oversight of DCPs. The Regulations were issued pursuant to Sections 57(1), 57(3) and 57(4) of the CBK Act. Further, on May 17, 2022, CBK reminded all currently operating DCPs to apply to CBK for a license. Out of the 288 applications received by CBK since March 2022, M-CREDIT was NOT one of the 10 applicants to be licensed as DCPs, pursuant to the CBK Act and the Regulations. For more information, here is the full list of mobile money lenders licensed by CBK as at September 17, 2022. See List Licensed Mobile Loan App Companies in Kenya
Kindly note that this is not financial advice.Our website services, content and products are for general informational and educational purposes only and is not a substitute for professional advice. We remind our readers to be careful with their money.You should NOT rely upon the information or opinions you read. Preferably, you should use what you read here as starting points for doing independent research on companies, products and investing techniques. Then judge for yourself the worthiness of the material that has been shared in our website.
M-CREDIT is as a digital credit provider (DCP). This means that they give loans to their customers via a mobile phone app.