Kenya plans to push regulations for fintech lending sector

Monday 28 May 2018 10:40 CET | News

The Kenyan Finance Ministry has published a draft bill on financial regulation covering digital lenders, to ensure the fair treatment of retail customers.

Kenya built a reputation as a pioneer of financial inclusion through its early adoption of a mobile money system that enables people to transfer cash and make payments on cellphones without a bank account.

As it was for mobile cash, Kenya is something of a test case for the new lending platforms. Several of the companies involved, including US-based fintech startups, have plans to expand in other frontier markets, meaning Kenya’s regulation will be closely watched.

Moreover, according to Reuters, some of the fintech lenders are expanding into other African countries and into Latin America and Asia, saying their aim is to help some of the billions of people who lack bank accounts, assets or formal employment climb the economic ladder.

Branch, a Kenya-based fintech banking platform, expects to grant about 10 million loans worth a total of USD 250 million in 2018, in Kenya and its other markets, Nigeria and Tanzania, according to Branch representatives, cited by Reuters.

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Keywords: Kenya, Kenyan Treasury, Finance Ministry, fintech, payments general, regulation, digital lender
Countries: World

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