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 4:38 PM

Black Lives Matter: Trump, Antifa, and the Anti-Racist movement

As massive protests following the passing of George Floyd kept on shaking the United States. President Donald Trump tweeted on 31st of May that far-left group Antifa was the one behind the violent riots and he would designate it as a terrorist group. He said, “The United States of America will be designating ANTIFA as a Terrorist Organization.” This assertion was repeated by the US Attorney General William Barr as well.

Antifa, short for anti-fascists, is an amorphous movement and not an organization as Trump labels it to be. They tend to be on the left of the U.S. political spectrum, many describing themselves as socialists, anarchists, anti-capitalists or communists. Antifa, according to many commentators, is just a decentralized collection of individual activists who mostly use non-violent methods to achieve their goal, which is to resist the spread of fascism. They track people who spread racist hatred and fascist ideology through on-ground events, traditional media, or social media and use cultural forms of art like drawing, music, film screenings etc. to spread the message of inclusivity. There are more militant anti-fascist groups as well, who mostly engage in non-militant activities but are willing to use more confrontational tactics at times as well. 

This is not the first time that Donald Trump has criticized Antifa to shift the focus away from racial discrimination faced by the black community in USA. In this instance as well President has tried to portray the protestors and looters with a vague phrase “radical-left bad people” and invoking “Antifa” to represent the whole of leftist militant groups which are bound more by belief than by any organizational structure.

Taking a cue from President Trump, many officials, conservative commentators and white supremacists started blaming Antifa for using the “Black Life Matters” movement to indulge in violence and undermining the government of the USA. Mr Trump’s national security adviser, Robert C. O’Brien, had also blamed such activists during his appearances on CNN and A.B.C. News. Mr O’Brien said the F.B.I. needed to “come up with a plan” to deal with Antifa. John Guandolo, who was in the FBI for 13 years, went a step ahead and claimed that Antifa and “Black Life Matters” are communist organizations, who are planning to overthrow the US government. He also praised President Trump for calling Antifa a terrorist organization and lamented that the FBI are unaware of its plan. Fiona Moriarty-McLaughlin, a journalist at the right-wing publication Washington Examiner, re-posted a video purportedly depicting "Paid #Antifa thugs" vandalizing the store — even though there is no evidence to suggest that the vandals were members of the movement.

The FBI and local law enforcement agencies have aggressively pursued charges against rioters, looters and others accused of havoc. However there is no evidence of any involvement of organized violence by Antifa or any other left-wing group. The most serious case that has emerged in federal court involved three men in Nevada linked to a loose, national network of far-right extremists advocating the overthrow of the U.S. government. They were arrested on May 30 on charges of trying to foment violence during Black Lives Matter protests. There are many instances when white thugs were seen vandalizing which blacks feared could be used against them.

The invocation of Antifa by President Trump during the “Black Life Matters” protest is conveniently used by the conservative commentators and white supremacists to somehow shift the focus away from the deep rooted racism in the USA to the violent actions by some protesters during the “Black Life Matter” protest.

As massive protests following the passing of George Floyd kept on shaking the United States. President Donald Trump tweeted on 31st of May that far-left group Antifa was the one behind the violent riots and he would designate it as a terrorist group. He said, “The United States of America will be designating ANTIFA as a Terrorist Organization.” This assertion was repeated by the US Attorney General William Barr as well.

Antifa, short for anti-fascists, is an amorphous movement and not an organization as Trump labels it to be. They tend to be on the left of the U.S. political spectrum, many describing themselves as socialists, anarchists, anti-capitalists or communists. Antifa, according to many commentators, is just a decentralized collection of individual activists who mostly use non-violent methods to achieve their goal, which is to resist the spread of fascism. They track people who spread racist hatred and fascist ideology through on-ground events, traditional media, or social media and use cultural forms of art like drawing, music, film screenings etc. to spread the message of exclusivity. There are more militant anti-fascist groups as well, who mostly engage in non-militant activities but are willing to use more confrontational tactics at times as well. 

This is not the first time that Donald Trump has criticized Antifa to shift the focus away from racial discrimination faced by the black community in USA. In this instance as well President has tried to portray the protestors and looters with a vague phrase “radical-left bad people” and invoking “Antifa” to represent the whole of leftist militant groups which are bound more by belief than by any organizational structure.

Taking a cue from President Trump, many officials, conservative commentators and white supremacists started blaming Antifa for using the “Black Life Matters” movement to indulge in violence and undermining the government of the USA. Mr Trump’s national security adviser, Robert C. O’Brien, had also blamed such activists during his appearances on CNN and A.B.C. News. Mr O’Brien said the F.B.I. needed to “come up with a plan” to deal with Antifa. John Guandolo, who was in the FBI for 13 years, went a step ahead and claimed that Antifa and “Black Life Matters” are communist organizations, who are planning to overthrow the US government. He also praised President Trump for calling Antifa a terrorist organization and lamented that the FBI are unaware of its plan. Fiona Moriarty-McLaughlin, a journalist at the right-wing publication Washington Examiner, re-posted a video purportedly depicting "Paid #Antifa thugs" vandalizing the store — even though there is no evidence to suggest that the vandals were members of the movement.

The FBI and local law enforcement agencies have aggressively pursued charges against rioters, looters and others accused of havoc. However there is no evidence of any involvement of organized violence by Antifa or any other left-wing group. The most serious case that has emerged in federal court involved three men in Nevada linked to a loose, national network of far-right extremists advocating the overthrow of the U.S. government. They were arrested on May 30 on charges of trying to foment violence during Black Lives Matter protests. There are many instances when white thugs were seen vandalizing which blacks feared could be used against them.

The invocation of Antifa by President Trump during the “Black Life Matters” protest is conveniently used by the conservative commentators and white supremacists to somehow shift the focus away from the deep rooted racism in the USA to the violent actions by some protesters during the “Black Life Matter” protest.

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