Saturday, August 15, 2020
Home > Business & Finance > Central Bank to regulate mobile lending

Central Bank to regulate mobile lending

The  Central Bank of Kenya (CBK) is set to regulate mobile lending firms to ensure the services are in tandem with the  law.

This  follows  complaints  from customers that they are charged exorbitant interest rates by the firms.

The  CBK Governor , Dr. Patrick  Njoroge  who presided over the launch of a new app (STAWI) that targets Small and Medium  Enterprises (SMEs) said most of the firms were behaving like shylocks.

Dr. Njoroge  revealed that all operators shall be vetted before being cleared to ensure that customers are not swindled.

“Very  soon  you  will start seeing CBK labels on the approved firms so that if you engage with those that are not dully  certified, you know for sure that you are getting into trouble with the law,” he cautioned.

Speaking  at  Kondele in Kisumu city,  the CBK Governor said the decision was reached after  realization that  the  SMEs had been sidelined by commercial banks, in view of the interest rate capping.

The  Chief Executive Officers (CEOs), Dr. Gideon Muriuki (Cooperative Bank), Jeremy Ngunze (CBA Bank), John Gachora (NIC),  and Joshua Oigara (KCB)  were among other dignitaries present.

Gachora  disclosed that the SME loans ranges from Sh.30, 000 to Sh.400, 000 and urged local business entrepreneurs to sign up with Stawi app if they hope to fully utilise the opportunity to boost their businesses.

By  Dorothy Otieno

Leave a Reply