Mobile lending poses threat to financial stability – Kenyan governor
Njoroge says unregulated digital lenders could ‘bring down entire financial sector’
Kenya’s central bank governor, Patrick Njoroge, warned lawmakers that unregulated mobile money lenders pose a serious threat to Kenya’s financial stability.
Njoroge spoke yesterday (July 10) to Kenyan lawmakers, where he said the rapidly growing digital lending sector was exploiting customers, leading to thousands defaulting on their loans. He said mobile lenders were “a major and potential problem”, but that the central bank lacked powers to regulate them.
“They are only less than 1% of the
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