Kenya’s Central Bank Proposes law to combat predatory lending by mobile loan apps

MTN Rwanda

Digital app lending companies operating in Kenya are set up for a shake-up after the country‚Äôs central bank proposed new laws to regulate monthly interest rates levied on loans by digital lenders in a bid to stamp out what it deems predatory practices. If approved, digital lenders will require approval from the central bank to increase lending rates or launch new products. The move comes in the wake of mounting concern about the scale of predatory lending given the proliferation of startups offering online, collateral-free loans in Kenya. Unlike traditional…

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