Sunday, July 12, 2020

Kenyans turning to mobile loans in times of COVID-19

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Kanika Bajaj

Article Title

Kenyans turning to mobile loans in times of COVID-19

Publisher

Global Views 360

Publication Date

July 12, 2020

URL

People of Kenya

People of Kenya | Source: Flightlog via Wikimedia

The economic impact of COVID-19 is felt on the personal finance of people across the world who are looking for ways to tide over the situation. In Kenya, people are lapping the short-term credit in the form of digital loans by mobile money operators. The number of people taking digital loans has doubled during the COVId-19 induced lockdown period.

Boston Consulting Group's Consumer Sentiments Survey conducted in April and May 2020 reported that "In May, 29 percent responded that they had taken out a short-term loan, compared to 16 percent in April. Mobile money operators were the most common sources of this credit”

Kenya is a pioneer in using mobile money transfer services as the key tool for providing financial inclusion to its citizens. A simple money transfer service, M-PESA launched in 2007 has transformed the financial service industry in Kenya. Today mobile money operators are providing multiple services like digital loans, marketplace for small businesses and farmers.

Digital loans are easy to process and disbursed but there are concerns of shaming the defaulters and compromising the data security of clients. The Digital Lenders Association of Kenya (DLAK) which is a body representing the digital lenders of Kenya has distanced from two of their members, Okash and Opesa over unethical practices. These mobile apps have shared the details of defaulting customers with the moneylenders and asking them to recover the money.

DLAK also stated that Opesa and Okash are known for attacking a client's data privacy which is against the Kenyan data protection laws and has additionally spoiled the reputation of digital leaders in Kenya.

In April 2020, Central Bank of Kenya barred unregulated digital mobile lenders from forwarding the names of loan defaulters to credit reference bureaus. A huge number of Kenyans have been recorded on Credit Reference Bureaus by digital money lenders for loans as little as $5.

Central Bank of Kenya governor Patrick Njoroge told during a press conference in May 2020 that the central bank in consultation with the mobile money operators and digital lenders is presently working to develop a model where the borrowers are protected from mistreatment of online moneylenders.

The borrowers are looking up to the regulatory authorities and the industry bodies to come up with a mechanism which will protect their interest in times of such a health and economic emergency.

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February 4, 2021 5:06 PM

Civilian Trials In Military Courts in Al Sisi’s Egypt

With President Abdel Fattah al-Sisi in power, Egypt is currently in the throes of a near-complete reversal of democracy. Under his rule the military has intruded into almost all aspects of public life, in a very explicit attempt to instill fear in Egyptians.

One of the most pervasive examples of this has been the military’s disruption of judicial process, with interference turning to encroachment as more and more civilians continue to be tried and sentenced by the army, through various nefarious means of expanded military jurisdiction.

Mohammad Morsi at XVI Non-Aligned Movement (NAM) Summit, in Tehran, Iran on August 30, 2012 | Source: Government of India via Wikimedia

While a military judiciary has been present in Egypt since the 1960s, their power continued to grow after then Defence Minister Sisi overthrew the democratically elected President, Mohammed Morsi in a coup and became Egypt’s new leader. Since then he has worked towards removing tenure limits to his term, virtually guaranteeing him power for another decade or more.

The Egyptian government, like many others across the globe, has used the pandemic and the limited mobility of citizens due to it to tighten their chokehold on dissent and opposition. In April 2020, the Egyptian Parliament passed amendments to its Emergency Law. The law already prohibited demonstrations and protests, and now allows the military to arrest and confiscate assets of citizens without requiring permission from the special prosecutor, and investigate civilians without the right to appear before a judge.

Egypt has seen more time under Emergency Law than not in the past few decades, and President Sisi has not strayed from this pattern. The law has been used in many ways to normalize the military trespassing into the civil judicial system, such as having military judges on civil judicial councils and declaring the military judiciary as “an independent judicial entity” no longer under the command of the armed forces.

Public facilities have been placed under military jurisdiction, in conjunction with a law that allows anyone who directly or indirectly “assaults” an army base to be tried in a military court. In these courts defendants do not have common legal rights such as being informed of their charges, access to a lawyer or being brought before a judge soon after arrest.

Late Shaby Habash, a young filmmaker who died in prison August 2020 | Source: Shaby Habash Facebook

Additionally, there have been multiple reports of torture, sexual assault while placed in detention. In prison too, detainees face inhumane conditions, not being allowed to see family, exercise or get sunshine and fresh air. Thousands of student protestors, journalists and political dissidents have been tried in these military courts, and hundreds more have been killed extrajudicially. At the same time, citizens’ tools to criticise these steps are undermined, such as by limiting the domain of NGOs, censoring news and social media, and blocking around 600 websites.

The arrest, incarnation and trial of the deposed President, Mohammed Morsi is a glaring example of what is wrong with Egypt’s military trials. Morsi, who was in jail for over 6 years since the coup in 2013 and was under trial in military court collapsed and died during a hearing in the military court itself.

The constitution, the parliament, the law, and the abuse of these pillars of democracy has been instrumental in Sisi being able to give the military and himself the extreme power that they now possess. But despite restrictions on assembling and protesting, Egyptians continue to make their voices heard in the streets and worldwide, hoping that where institutions betray them, their community won’t. Hoping against hope, hoping against tyranny.

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