Consumers need protection, CBK Governor tells members

Central Bank of Kenya (CBK) and AFI are co-hosting a Member Training on Regulatory and Supervisory Framework for Digital Credit on 6 – 8 November 2019 in Nairobi, Kenya. CBK is sharing implementation experience and expertise along with other stakeholder institutions following Kenya’s a significant progress in the area of digital credit.

Participants are learning how to identify the key criteria considered when developing a supervisory framework for responsible use of digital credit. Based on the Regulatory & Supervisory Framework for Digital Credit developed by AFI, the training aims to address concerns, promote responsible digital credit and closing of the gender gap.

“AFI is very valuable as it brings together all the members under one vision of financial inclusion. This member training allows you to learn about innovations from each other and not just on digital credit. You can compare notes on all matters”, CBK Governor Patrick Ngugi Njoroge emphasised in his address to regulators attending the training. 

“I encourage you to be quick as time is of the essence when it comes to digital services”, Governor Njoroge underlined.

The training is highlighting key gender considerations on the regulation and enforcement of digital credit, especially important in the areas such are avoiding over indebtedness, transparency and disclosure, cybersecurity, digital fraud and digital financial literacy.  

Adopted by the AfPI leaders at the 2019 Global Policy Forum (GPF) in Rwanda, the  Framework is a tool for improving the capacity of regulators in the regulation and supervision digital credit in Africa. It provides minimum regulatory and supervisory requirements for enabling the development of responsible digital credit.

“The implications of digital credit offering are typically two-fold; first, it can help small enterprises to scale and to manage their daily cash flow and households cope with things like medical emergencies.”, AFI Deputy Executive Director Norbert Mumba told the training.

“Second, the speed and ease of access to credit through mobile applications has, on the other hand, caused many borrowers to become heavily indebted”, AFI’s Deputy Executive Director further explained.

To facilitate ease of referencing, the minimum requirements are grouped into ten key principles which will be discussed throughout this 3-day Member Training. The principles include, among others the Digital Credit Regulation and Supervision, Credit Information Sharing, Cyber Security, Data Protection & Privacy and Consumer Awareness & Financial Literacy. 

“We need to supervise from the standpoint of the service being provided regardless of who is putting forward the lending. Consumers need to feel they are protected by us.”, Governor Governor Njoroge said

CBK-AFI Member Training is organized for 53 senior officials who are working to develop policies on digital credit. They are representing 35 member institutions from all AFI regions– Asia, Pacific, Sub-Saharan Africa, Middle East and North Africa, Latin America and the Caribbean, Eastern Europe and Central Asia.