MPs move to stop digital lenders from “debt shaming” Kenyans

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.

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Lawrence Baraza

Lawrence Baraza is a dynamic journalist currently overseeing content at Metropol TV Digital. With a keen focus on business news and analytics, Lawrence guides the platform in delivering insightful, data-driven content that empowers its audience to make informed decisions. Lawrence’s commitment to quality and his ability to anticipate market trends make him a key figure in the digital media landscape. His work continues to shape the way business news is consumed, making a significant impact in the field.

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