How Kenya Solved Its Loan App Crisis – Lessons for Every Country

While we have covered many problems in this article, there is also good news. Kenya has made remarkable progress in regulating loan apps.

Here is what Kenya did:

• Licensing requirement: All digital lenders must now be licensed by the Central Bank of Kenya
• Minimum capital: Lenders need at least 20 million Kenyan Shillings to operate
• Data protection: Strict rules on accessing borrower contacts and photos
• Interest rate caps: Limits on how much interest lenders can charge
• Enforcement Fines up to 2 million Shillings for violations

The Lesson for Other Countries

If Kenya can do it, so can your country. Demand that your government:

1. Create a registry of approved digital lenders
2. Set minimum capital requirements
3. Enforce data protection laws
4. Cap predatory interest rates
5. Fine and prosecute violators