CBK Gets Powers to Control Mobile Loan Rates
By Business Daily MPs have offered the Central Bank of Kenya (CBK) express powers to control lending rates of digital mobile lenders under a proposed law that will see the regulator control their products, management, and sharing of a borrower information. The parliamentary committee on Finance and National Planning approved the Central Bank Amendment Bill 2021 and added a clause that gives the CBK powers to price interest rates for digital loans. Now, the key aim of the government-backed Central Bank of Kenya (Amendment) Bill, 2021, which seeks to empower the banking regulator to supervise digital lenders for the first time is to curb the steep digital lending rates that have plunged many borrowers into a debt trap as well as predatory lending. The Bill was initially silent on the lending rates, only stating that the digital lenders were to play under the same rules as commercial banks that seek the CBK’s nod for new products and pricing that includes loan charges. The r...