Kenya has become a lucrative market for digital lenders. Given the fact most people are making a living in the informal sector and don’t have much going their way in terms of credit security. More often than not, a conventional bank will likely turn down a loan request by the average Kenyan who walk in their front doors.
For decades the banks have for the most part steered clear of Kenyans who are either not employed, or don’t report high revenue turnover for a number of years. Leaving fintech innovations such as mobile money services to cater to this market. The only problem has been, the fintech solutions have been having such a good run with this market, now conventional banks wants in.
Through the Central Bank of Kenya, it is clear that the mainstream banking system is lobbying to have lenders within the fintech space regulated. As it is, fintech lending money to Kenyans are not operating within a central government stipulated standards.
That in itself is a double-edged sword; they are just as likely to operate in a Shylock fashion as they are likely to help …read more