A client has written to KenyanBusinessFeed.com accusing digital leanding app Okash of bad business practices.
“Hi… Okash loan Mobile are really now taking advantage during this season for those who have taken loans and they have defaulted. They charge 2% daily as per what one has borrowed. Is this charge rate daily legal as per loan policy? They charge me ksh 59 daily as per what I took”, he wrote.
Okash, which is among the numerous Loan app in Kenya has been on the spot accused by its clients of malpractices like sharing personal details with oimthers such as defaulting in paying loans, harvesting data and kidnapping defaulters then forcing them to pay.
The digital lending apps are not regulated.
The Central Bank of Kenya (CBK) has however over the years released directives on what needs to be done to tame the excesses of the lending apps.
Early this year, CBK and the National Treasury announced that they are working on regulations to tame predatory lending apps.
Speaking during the 5th edition of the Credit Information Sharing (CIS) Conference in February, officials reiterated government’s commitment to root out the ‘shylock’ apps.
Deputy Governor of CBK, Sheila Mbijiwe said that regulator will soon change laws to monitor the unregulated money lending apps. She added that current regulatory framework is limited to traditional financial institutions such as banks and saccos.
On his part, Senior adviser, Dr. Geoffrey Mwau said that the National Treasury is in the process of developing a national credit information sharing policy. He added that CIS financial literacy and public awareness will roll out soon.
As the govt looks for ways to take the runaway ills in this sector, Kenyans, especially the young have been impacted the most.
The aggressive nature by which the lenders collect their debts has made some commit suicide.
At last, It was death by suicide that jolted Kenya’s top financial regulator and sparked one of the most compelling moral conundrums for the fintech-fuelled digital lending craze in the country.
Ms M’Mbijjewe had narrated the story that February that, “In November last year, a lady came to the Central Bank to explain to us that her husband had committed suicide after getting involved with one of these lenders”.
She continued, “What this lender did is that when her husband was unable to pay the debt through the contact list of her husband, [the lender] started sending messages to all of them, including his mother, his grandmother and his aunt”.
Loan sharks have been called criminals who charge extortionist interest rates and use callous methods to force people to pay the money back.
Originally founded by OPay, OKash first launched in Kenya, and it exited beta testing in March 2018
Okash has been exposed enough.
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