The Central Bank of Kenya (CBK) has warned mobile money lenders against fraudulent dealings.
Speaking during the rollout of the Stawi loan app at Kondele market in Kisumu, CBK Governor Patrick Njoroge said that the financial institution is aware of lenders who want to take advantage of borrowers’ needs to charge them high-interest rates.
Njoroge said that the bank is ready to protect all the borrowers from lenders who want to make abnormal profits from the proceeds of interest.
The banking watchdog has now asked the general public to be keen to avoid any form of exploitation they are likely to face in the hands of the lenders. He also said that the bank will not tolerate lenders who want to frustrate the taxpayers through loans.
“All financial services and products will soon have a label of approval by the CBK to be able to guide users on which products to use,” he said, as quoted by Daily Nation.
He also urged lenders to offer borrowers with services that meet the standards of financing in the country.
The CBK boss further said that the body will not relent in monitoring microfinance institutions as well as commercial banks in different parts of the country in the coming years.