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{
    "id": 1095447,
    "url": "https://info.mzalendo.com/api/v0.1/hansard/entries/1095447/?format=api",
    "text_counter": 306,
    "type": "speech",
    "speaker_name": "Roysambu, JP",
    "speaker_title": "Hon. Isaac Ndirangu",
    "speaker": {
        "id": 2701,
        "legal_name": "Isaac Waihenya Ndirangu",
        "slug": "isaac-waihenya-ndirangu"
    },
    "content": " Thank you very much, Hon. Temporary Speaker for giving me this opportunity to second this important Bill and at the same time appreciate my Chair for moving the Bill competently. Digital lending has grown exponentially in the recent few years. Of course, this is as a result of mobile phone penetration in urban and rural areas. It is also as a result of the adoption of mobile phone-based financial services. The reason it has grown fast is also because of its “if in use” and the convenience. Digital lending is regulated by the Central Bank of Kenya, particularly for the established commercial banks, micro-finance banks and other institutions. However, there is that other area that is unregulated digital lending by other digital lending platforms. Regulated digital lending as at April 2021 stood at around 3.9 million accounts valued at about Kshs50 billion worth of loans while unregulated digital credit lending platform accounts for about Kshs4 billion, which is about one per cent of the gross loan portfolio of the banking sector. Examples of digital money lending platforms include the very popular Tala, iPesa, Okash, Zidiwa, Zenka, Haraka, Kopakash, Berry, M-Shwari, Pesa Zone, Fuliza, Okolea, Utunzi and Fanikisha. The unregulated digital credit has grown from 2,000 Kenyans in 2016 to about two million Kenyans today. About 62 per cent of the borrowers on the digital credit platforms are below the age of 35 years. Most of the borrowers are Small and Medium Enterprises (SMEs), Jua Kali people, mama mboga, and mechanics. This is a ready solution when you want cash. The Digital Lenders Association of Kenya (DLAK) appeared before us and pleaded with our Committee that even as CBK seeks to regulate this sector, we must not kill innovation. They pleaded that we allow the digital lenders platform to thrive because they offer platforms to many Kenyans who have no access to capital and quick cash. The DLAK has funded the Jua Kali sector and many SMEs. All the same, the DLAK agrees that there should be a prudential regime for regulation and were pleading with us that we should empower them by allowing a level playing ground legislation regime as opposed to the very stringent regulation by the Central Bank of Kenya. The electronic version of the Official Hansard Report is for information purposesonly. A certified version of this Report can be obtained from the Hansard Editor."
}