CBK Issues an Advisory warning: 400 Digital Lenders on the spot over Fraud Concerns.
CBK Issues an Advisory warning: The Senate finance committee has questioned the Central Bank of Kenya whether it had instituted a predatory lending detection system and whether as the regulator, they had reined in on entities abusing the laws.
This comes after it was found out that most of the lenders were unregulated and are putting millions of gullible members of the public at risk.
CBK stated,“We realise that the DCP were not really consumer friendly that is why we brought them under CBK, we have license 32 quite a number a remaining,”
As of now, petitions from members of the public on four micro-lending entities imposing huge interests against the provisions of the digital credit providers regulations of 2022 have been presented in Court.
As a measure, CBK has been directed to present a report outlining an audit of the digital lenders and steps taken to reign in on the fraud ones, within two weeks.
Further, CBK is also investigating reported cases of collusion between fraudsters and banks resulting in the withdrawal of clients’ money. If found guilty, a 20 million penalty has been put up.
Notably, the performance of the Kenya shilling against other currencies is still under scrutiny, the CBK CEO revealed steps taken by the government to prevent it from falling any further.
Thugge stated,“In January we expect 682 million dollars to come from the IMF, we also have some funds from the trade debt bank in the next two weeks, and we also have funding from AfroExim and World Bank we expect to reduce domestic borrowing, this should lower interest rates, we will see stability in the exchange rate because of external financing.”
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