onday, April 26, 2021 -Rogue mobile money lenders who have flooded the market will soon be de-registered by the government.
Central Bank of Kenya Governor Dr. Patrick Njoroge has announced plans to bring back sanity in the finance sector which has since been invaded by not only rogue financial institutions but also money launderers.
Njoroge, in his statement, proposed a raft of far reaching reforms in the banking sector which seems to be subjecting citizen to endless strenuous loans.
The move will be informed by the Central Bank of Kenya (Amendmnet) Bill of 2020 which allows regulation of players in the money sector. So far a total of 14,035, 718 Kenyans have since been blacklisted by the Metropol Credit Reference Bureau CRB.
A report from the Ministry of Finance established that so many Kenyans are living in debts by borrowing one to offset the other in a circle that can go on the rest of their lives.
Rogue lenders will therefore bear the brunt of closing shop if the threat by CBK will be made good in a few days to come. The CBK argued that some unscrupulous lenders have been engaging in unethical practices which includes breaking into private data of clients, shaming of defaulters as well as laundering.
A year ago, regulator raised a similar alarm on mobile digital platforms which have continued to flood the market by thriving in laundering activities.
They will now be forced to disclose where they source the money the purport to lend to the members of the public.