Sunday, July 12, 2020

Kenyans turning to mobile loans in times of COVID-19

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Article Contributor(s)

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 4:36 PM

Story of Iyad Hallaq: What it tells about Palestinians under Israeli occupation

The death of Iyad Hallaq, an autistic Palestinian man, who was shot dead by two Israeli police officers sparked several unrests in Jerusalem. Iyad Hallaq of age 32 was walking to his school of special needs in the Old City of Jerusalem. According to the statement given by the police officers, Iyad was wearing gloves which made them suspect he possessed a weapon. Iyad, who was diagnosed with low functioning disorder, had limited communication skills. Due to this out of panic, he fled, and the police personnel started firing. He tried to hide behind a dumpster where he was shot dead. It is suspected that one of the police officers might have kept shooting despite receiving orders from his commander to halt.

Following this event, the family’s house was searched without any consent for possible weapons. Later on, the family requested a Palestinian representative to be present during Hallaq’s autopsy. The family alleges that this representative was denied entry. The police sealed off the Old City and reported that the Police Internal Investigations Department would be taking over the investigation of the case.

Mansour Abu Wardieh, the victim's cousin, said the family is not optimistic about the police investigation and fears that the police would end up twisting the facts. This lack of trust in the police authorities could be attributed to the fact that firstly the police have shown their disregard to the family by their actions mentioned above and secondly, in the last ten years Israeli security forces have killed more than 3,400 Palestinians but have only been convicted five times.

These numbers prove that Iyad’s killing is just the tip of the iceberg of the atrocities faced by Palestinians that live under the Israeli occupation. Iyad’s case has created a trigger for the Palestinian Arab minorities in Jerusalem to channel out their frustration. The killing has not only been condemned by Palestinians, but also by Jewish Israelis and international figures. The protests against police brutality after the killing of George Floyd have been gaining momentum and protests in Jerusalem began to draw parallels between these two cases. The protests in Jerusalem resounded with several slogans like ‘Palestinian Lives Matter’ alongside the ‘Black Lives Matter’ slogans.

Though the demonstrations united the Palestinian Arabs and Israeli Jews, it comes as little relief to the family and for Arab minorities. It was after more than a week that the Israeli Prime Minister Benjamin Netanyahu broke silence on this matter. Middle East Monitor reported the exact comments of the prime minister “What happened to Iyad Hallak is a tragedy. This was a man with disabilities, autism, who was suspected – and we (now) know wrongly – of being a terrorist in a very sensitive venue”. While the prime minister's comments fell short of an apology the Defence Minister Benny Gantz offered a public apology.

While the family and protestors remain un-optimistic about the justice being delivered insights shared by an Israeli Parliament member Ahmed Tibi, seem to shed some light on why Hallaq was killed. According to Tibi, Arabs and Palestinians were intentionally killed without any concrete reason, and for long this has been the policy of the Israeli forces. B’Tselem, a human rights organisation based in Israel said that most killings of Palestinians “were a direct outcome of Israel’s reckless open-fire policy, authorised by the government and military and backed by the [Israeli] legal system.”

The whole system in Israel seems to be designed to discriminate against its Arab minorities. Various senior political officials have openly spread hate against these minority communities. They have also encouraged their soldiers and police forces to kill Palestinians even if they have the slightest suspicion of them being a threat. It is a systematically built system that has subjected Palestinians to abuse and harsh punishments immemorial.

More than 150 instances were recorded between the span of October 2015 and January 2017 in which Israeli security forces have shot Palestinians under suspicion of carrying weapons. However, video footages or witness accounts have raised questions in many cases regarding the necessity of force. Repeatedly cornering these minorities have led to the death of 33 Israelis in the hands of Palestinian assailants in the same period. Hence this use of lethal force has had devastating effects on both the communities. Regulation of force by armed personnel and unbiased, neutral approach is required to curb down this violence. The authorities must also create rules that clearly define the boundaries for force used by armed personnel, and the state should actively denounce hate speech and illegal lethal force to avoid cases like that of Hallaq repeating.

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