Central Bank of Kenya studies mobile lending rules
The Central Bank of Kenya (CBK) is conducting a study on the impact of its policies and regulations on lending through mobile phones and the internet, Business Daily reported. Accurate data is not yet available, but the number of mobile money lenders has grown significantly in recent years, and the CBK is concerned that the sector may be expanding faster than it can regulate effectively.
Players are coming up with new and varied products for the market. The mostly unregulated business is booming, with increasing advertisements on billboards, on radio and social media, offering instant loans, the newspaper said.
Regulations for non-deposit taking microfinance institutions are yet to be put in place. The National Treasury is in the process of discussing the best way forward for regulating the sector, the CBK says. CBK Governor Patrick Njoroge, however, said that the regulator has a way of overseeing operations as they transact and transfer money.
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