The National Assembly Committee on Finance and National Planning now wants digital lenders who share borrowers’ information in contravention of the data protection act or the consumer protection act stopped from operating.
This is after the Committee added a clause to the Central Bank( Amendment) Bill 2021, which will now give powers to the Central Bank of Kenya (CBK) to revoke the permits of digital lenders who breach the confidentiality of personal information to pursue defaulting borrowers.
It is a move that aims at putting to a stop a behavior where some lenders have in the past “debt shamed” borrowers to recover loans.
The data protection Act, 2019 bars sharing of data with third parties without consent and gives individuals the right to be told when their data is being shared and for what purposes.
