Digital lenders have now backed proposed regulations terming it a good move to push the loan prices down. Digital Lenders Association of Kenya (DLAK) Board Chairman Kevin Mutiso said that the regulations, that will see them fall under Central Bank of Kenya (CBK) supervision put all players on an equal footing and a sign of maturity in the industry. “We price our loans based on risk and a lot of the risks will be reduced by standardising certain things. “If passed, The Central Bank of Kenya (Amendment) Bill of 2020 bars digital lenders from operating without licences in a bid to streamline the industry.”Read MoreEven though they have helped deepen financial access, the digital lenders have for a long time been accused of charging high-interest rates, using crude methods to recover loans, debt shaming and predatory lending tactics by offering loans to borrowers with no means to pay back. Subscribe to Our Newsletter Subscribe to our newsletter and stay updated on the latest developments and special offers!

Source: Standard Digital March 08, 2021 18:33 UTC