In the past decade, numerous mobile lending apps have been launched in Kenya, riding on the growing need for quick loans. However, these startups have been operating in an unregulated environment — until today: President Kenyatta has signed an amended law that gives the country’s Central Bank the power to license and regulate digital lenders. Companies have six months to apply for a license.
Lenders will also have to honor existing consumer and data protection laws. Firms will have to maintain the confidentiality of customer info. They’ll need to disclose pricing, the consequences of defaulting on loans, and outline debt recovery.
Read more: Tech Crunch