The Central Bank of Kenya – CBK is formulating a new regulatory framework tailored for micro and digital lenders in efforts to enhance protection of consumers from exploitation by financial technology providers.
Central bank Governor, Dr Patrick Njoroge, says under the new regulatory framework, digital lenders will have to be licensed to operate in Kenya.
As part of the projected advancement in financial technology in Kenya, digital lending platform customers will be notified whether the online lender is approved by the Central Bank of Kenya or not.
Dr. Njoroge says many Kenyans suffer at the hands of digital lenders, some who charge interest rates way above the regulator’s recommendations.
The governor says, financial technological innovations should be product-centered so as to meet the needs of the customer, thus, the need to streamline the playing field.
For that reason, the central bank of Kenya is partnering with the Monetary Authority of Singapore on a platform that will test the quality of financial technology products in Kenya.
Safaricom is shifting focus to agriculture, predicting a double-digit growth in Agritech driven by the opportunities offered by the fintech platform in the country.