Mathare Member of Parliament has declared war on lending apps. Antony Oluoch wants all mobile lending apps regulated and investigated for luring Kenyans to borrowing without disclosing their lending terms.
He says, “non disclosure of full lending terms is making it easy for Kenyans, especially youths to borrow for betting or to pay for previous loans instead of investments”.
Lending apps have become popular in Kenya, where millions of people don’t have bank accounts or credit cards but do have mobile phones.
In Kenya, there is an explosion in mobile lending and little government oversight hence more Kenyans depending or lured to borrow unnessesarily.
Data from Central Bank of Kenya (CBK) indicates that in the last decade, Kenya has witnessed an unprecedented upsurge of technology-driven innovations in its financial landscape.
Apart from M-pesa platform, which has M-Shwari and KCB APP, there are over 50 apps lending money to millions of Kenyans.
A recent report says that 19 million Kenyans have been turned to borrowers via lending apps.
The Mathare MP further said that, “digital borrowing has become a social menace responsible for suicide, divorce, family breakup and increased listing of loan defaulters”
The lending app business will be worth over 500 billion by the end of 2020.