As regards 3. How about the Credit Reference Bureaus? Are they stuck in a
time warp or is the legislation in place encumbering them from innovation?
I once spoke to KBA’s Dr. Habil Olaka and he noted that the CRB’s role in
the market has not been achieved as it is currently constituted.
According to him, CRB was not to play the role of blacklisting persons who
have defaulted but rather to inculcate an environment where people become
help financial institutions to better price a person who is seeking
This is a reason that led to the launch of the Loan Calculator by the KBA.
There reasoning was it is better to get a loan from a bank rather than the
mobile lending platforms.
However, in line with what @GraceBomu notes on mobile lending, FSD in
their 2017 report <fsdkenya.org/annual-report/2017-annual-report/>
recommended that “As the market for digital loans grows and diversifies,
further research is needed to help build a more complete and timely picture
of how and whether these products can improve Kenyans’ lives.”
On Regulation: CBK has the best answer on how it regulates mobile lending
institutions so that they are differentiated from the banks. However, I
agree with BBK MD Jeremy Awori who says “Excessive control and regulation
does not help the market. This is adding a lot of bureaucracy and cost,
which will find its way to the charges of products” he spoke this
Same sentiments have been raised by Safaricom and also the CBK
as regards to the new Financial bill
*David Indeje *
+254 (0) 711 385 945| +254 (0) 734 024 856 Khusoko
On Thu, 12 Jul 2018 at 09:47, Grace Bomu via kictanet <
> Hi Ali,
> With regard to the question of mobile money lending, it is a subset of
> micro finance in many ways. It definitely leads to more financial
> inclusion for the unbanked and provides credit to those who would normally
> not be targeted by banks. However, the interest rates are sometimes so high
> that one wonders if the goal is financial inclusion or bondage through
> credit. There needs to be more transparency by the lending apps not only
> about their rates but how these are derived, what data they hold and for
> how long. The money lending apps are also marketed in isolation from other
> important information that one needs in order to make the most out of
> credit. In comparison to microfinance for example, the institutions take
> time to educate borrowers about finance, business plans, loan repayment
> plans etc. There are also social structures like women groups or SACCO
> groups that assist borrowers to reach their goals with the money they
> borrowed. This is a gap with mobile money lending apps which are more
> impersonal and agnostic about the purposes for borrowing.
> Il giovedì 12 luglio 2018, Ali Hussein via kictanet <
> email@example.com> ha scritto:
>> Dear listers.
>> Since the advent of Mpesa, Kenya has been recognized as Ground Zero for
>> Mobile Money/Payments Innovation the world over. According to a World Bank
>> report one in every ten human beings regularly using mobile money is a a
>> Over the last few years Fintech (Financial Technology) has become all the
>> rage. American startups are setting up in Kenya. The more common ones that
>> we know are Branch and Tala who combined have raised over $150m of venture
>> funds in the last few years. These two are mainly mobile lending platforms.
>> Insuretech is taking root. Payment Platforms are proliferating. Banks are
>> jumping onto the Fintech Bandwagon with mainstream banks like Barclays and
>> HF Group launching their mobile lending apps. Equity Bank boldly announced
>> a few weeks ago that they are building an API Bank. Banking as a Service as
>> it were.
>> Not to be left out, Blockchain and it’s offspring, Bitcoin is threading
>> to complete the upheavals in the financial sector. On top of it all the
>> government is playing catch up on regulation with the announcement of the
>> Finance Bill 2018. See analysis from KPMG on this.
>> To ponder:-
>> 1. Are we moving too fast? Is there a need to take a chill pill and
>> reflect on the gains and achievements of the sector? Should we regulate
>> lightly or heavily?
>> 2. Should we regulate and cap the mobile lending platforms? Are they
>> playing a crucial role of financial inclusion or are they just loan sharks
>> on steroids?
>> 3. How about the Credit Reference Bureaus? Are they stuck in a time warp
>> or is the legislation in place encumbering them from innovation?
>> 4. Lastly is the BlockChain conversation being overhyped? And how do you
>> separate the technology from the cryptocurrencies it spawns?
>> Over to you Listers.
>> *Ali Hussein*
>> *AHK & Associates*
>> +254 0713 601113
>> Twitter: @AliHKassim
>> Skype: abu-jomo
>> LinkedIn: ke.linkedin.com/in/alihkassim
>> “We are what we repeatedly do. Excellence, therefore, is not an act but a
>> habit.” ~ Aristotle
>> Sent from my iPad
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