NAIROBI, Kenya Dec 8 – Digital lenders will now be regulated by the Central Bank of Kenya(CBK) following President Uhuru Kenyatta’s assent to the CBK (Amendment) Bill 2021.
The new act now gives the CBK powers to license digital lenders in the country as well as ensure the existence of fair and non-discriminatory practices in the credit market.
Digital lenders have been on the spot for shaming borrowers, by informing their friends and family using contact information from their phones or by threatening to report to their employers.
The law gives CBK powers to revoke the permits of digital lenders who breach the confidentiality of personal information to pursue defaulting borrowers.
Under the new legislation, lenders are also required to apply for licenses from the CBK, with the regulator expected to publish a list of all licensed digital money lenders in the Kenya Gazette.
“The bank may suspend or revoke a license by written notice to the holder of the license if the licensee (digital lender) is in breach of subsection (2A) or the conditions of the Data Protection Act or the Consumer Protection Act,” the law reads in part.
Digital lenders seeking licenses will have to get clearance from the Data Commissioner, highlighting the stiff measures that have been put in place to prevent abuse of borrowers’ information.
The Data Protection Act bars sharing of data with third parties without consent and gives individuals the right to be told when their data is being shared and for what purposes.
President Uhuru Kenyatta also assented to the Trustees (Perpetual Succession) (Amendment) Act, of 2021 as well as Public Private Partnerships Bill 2021.
The Trustees (Perpetual Succession) (Amendment) Act, passed by the National Assembly on 19th October this year, seeks to simplify the registration of trusts by, among other reforms, shifting the administration of the process to the new office of the principal registrar of documents.
On its part, the new Public Private Partnerships Act repeals the 2013 legislation by providing an elaborate legal framework to cover both national and county level PPP projects.
Further, the new law expands the role of the private sector in PPP initiatives beyond financing to include construction, operation and maintenance of the projects.
The Trustees (Perpetual Succession) (Amendment) Act, passed by the National Assembly on 19th October this year, seeks to simplify the registration of trusts by, among other reforms, shifting the administration of the process to the new office of the principal registrar of documents.
National Assembly Speaker Justin Muturi, his Senate counterpart Ken Lusaka, Treasury CS Ukur Yatani and Head of Public Service Dr Joseph Kinyua attended the brief bills’ signing ceremony in State House, Nairobi.
Others were Leader of Majority in the National Assembly Amos Kimunya, Solicitor General Ken Ogeto and State House Deputy Chief of Staff Njee Muturi.
