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According to BRIAN NGUGI
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Five financial regulators have warned Kenyans against a growing number of "unauthorized and unregulated" financial services and products, saying that they pose enormous risks. The Sacco Societies Regulatory Authority, the Insurance Regulatory Authority, the Capital Markets Authority and the Ministry of Commerce, said the services include pyramid schemes, credit systems, and credit cards. savings and "fraudulent" mobile applications. available on platforms such as the Google Play Store and the Apple Store.
"Some of these products require payment of registration fees," they said in a joint statement. Some require members of the public to save before qualifying for a credit facility. "
They also distinguished the money-rich scams that guarantee high returns in a short time.
" They promise unusually high returns "
" They may require the hiring of more clients to earn money. points and be eligible for more benefits such as larger loans, "they say.
More than one in four Kenyans – or more than six million people borrowed a digital loan, highlighting the key role played by mobile loans.
A recent report by Financial Sector Deepening Kenya, CBK and Kenya's National Bureau of Statistics shows that Kenyans are mainly turning to digital microloans. "The results suggest that digital credit has become one of the main sources of credit in Kenya and that it is mainly used to finance working capital and daily consumption needs.In 1965, the Treasury has become published a bill on financial regulation, which covers for the first time digital lenders.
Its main purpose is to ensure that providers treat. "We have a lot of predatory lending here, which we want to regulate", has said Geoffrey Mwau, Director General of Budgetary, Fiscal and Economic Affairs at the Treasury on May 25.
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