Kenya’s financial sector has been recognised globally for its dynamism in the areas of mobile money and digital financial services, and in today’s society one fundamental enabler is required to ensure confidence and credibility in these systems: a robust and adaptive data protection regime.
Data fuels modern finance from customer onboarding and credit scoring, to fraud prevention and risk management. For consumers, the assurance that their data is used lawfully and securely is central to trust.
For investors and international partners, regulatory alignment and predictability are critical considerations in determining allocation of capital.
The enactment of the Data Protection Act (2019) and the establishment of the Office of the Data Protection Commissioner (ODPC) were important milestones.
However, rapid advances in technology, such as artificial intelligence (AI), distributed ledger systems and biometric authentication require regulatory foresight to ensure the law remains fit for purpose as AI becomes mainstream.
Three priorities stand out:
Agility in Regulation: Principle-based frameworks, complemented by regulatory sandboxes, will enable innovators and regulators to co-develop responsible data practices.
Cross-Border Harmonisation: Identifying where alignment with continental instruments like the AU Malabo Convention and global standards such as the EU's General Data Protection Regulation will reduce barriers to regional integration. Beyond these, securing adequacy decisions would streamline data flows across borders, reducing operational and compliance costs, thereby accelerating innovation.
Transparency: Clarity on mandatory disclosures, and clearly defined accessible redress mechanisms are key to safeguard consumer rights and promote credible financial participation.
These three priorities are crucial for businesses to build a data protection ecosystem that is not only compliant, but also a catalyst for growth.
By embedding adaptability, alignment, and accountability into regulatory frameworks, Kenya can consolidate its leadership in financial innovation while safeguarding citizens and attracting long-term investment.
The writer is a senior director, legal, Tala Kenya
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