Competition Authority to conduct a sector study on Kenya’s digital credit markets
The Competition Authority intends to carry out a sector study into the regulated and unregulated digital credit markets in Kenya.
In a gazette notice, the competition watchdog Director-General, Wang’ombe Kariuki said the study seeks to identify and address potential consumer protection risks and concerns in the regulated and unregulated digital credit markets.
The study, which will be undertaken with financial and technical support from Innovations for Poverty Action (IPA) and Financial Sector Deepening (FSD-Kenya), also aims to increase transparency and comprehensiveness of product information and terms and conditions.
More specifically, the study will address probable fraud in digital financial services, improve consumer redress for digital credit products and increase consumer control over personal information to expand choice and competition.
It will also inform the development of policies to ensure adequate consumer protection across regulated and unregulated lenders and equal protection of all Kenyan consumers.
The announcement comes a week after the Central Bank of Kenya (CBK) indicated that it is formulating regulations to rein in on digital credit firms in a bid to tame predatory lending practices and exorbitant monthly lending rates.