Central Bank of Kenya urge Digital lenders to disclose the source of funds

Government institutions know how to spoil a party for anyone. 

Digital lenders in Kenya must disclose the source of funds as part of the new law by the Central Bank of Kenya. 

The financial regulator also requires digital lenders to get a licence from the country’s monetary authority. CBK said failure to obey the rules, digital lenders must end their operations by September 2022. 

Before the digital lenders used to register their businesses and start operating in the country, unfortunately now the table has turned. 

According to Digital Credit Providers, “A digital credit provider shall provide to the Bank (CBK) the evidence and sources of funds invested or proposed to be invested in the digital credit business and demonstrate that the funds are not proceeds of crime.” 

“The Regulations seek to address concerns raised by the public given the recent significant growth of digital lending, particularly through mobile phones. These concerns relate to the predatory practices of the previously unregulated digital credit providers, and in particular, their high cost, unethical debt collection practices, and the abuse of personal information,” said the CBK.

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