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Digital lenders named the worst offenders in consumer complaints
The public outcry over predatory lending practices, harassment of borrowers and abuse of personal information pushed the CBK to bring digital lenders under its regulatory umbrella.
Complaints by consumers against digital lenders accounted for the biggest increase in cases filed at the Competition Authority of Kenya (CAK) the year to June 2024, highlighting their continued violation of rules barring predatory lending, poor disclosures and harassment of borrowers despite enhanced regulatory oversight.
The CAK said in its annual report for 2024 that the financial sector accounted for 29.5 percent or 197 of the 668 consumer cases filed by Kenyans in the period, up from 100 cases or 19.2 percent of 521 cases in the previous year.
