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 4:46 PM

Electoral Processes in the US: Electing the President

The USA electoral process is a complex one; caucuses and primaries, followed by national conventions, general elections, formation of the electoral college and the selection of the president. Each step of this process has a lot of subtleties, which vary widely from state to state.

Caucuses and Primaries: This is the initial step of the selection of president. This stage of choosing occurs within a political party, where the party picks the candidate to rally behind.

In the state “Primary”', the registered members of political parties cast votes to allocate delegates for the presidential nominees of their parties. In some of the states this is done through caucuses, where groups are formed behind various potential candidates and there is discussion and persuasion between various groups. Republican party allocates all the delegates directly through primary or caucus, however the Democratic party allocates some Super-Delegates over and above the directly elected ones. These selected or allocated delegates are sent to the national party convention to represent their nominees.

In the process occurring between the primaries and caucuses to the selection of the potential electors is decided entirely by the party. The democrats, after the 1968 democratic convention, made a formal mechanism to reduce power of party leaders over the selection process and ways to represent minorities in the electors. This, however, backfired for the party as the delegates selected by primaries voted according to candidates and not the party, which led to the 1972 democratic Presidential candidate to win in only one state. The rules were then reformed and the concept of Super-Delegates was introduced. The Republican party also followed a somewhat similar trajectory, but did not impose as many restrictions on the delegate selection process, and never took measures to include the minorities.

National Conventions: Each parties’ delegates then choose a final presidential nominee at a national party convention. The nominee picks another person, who would be the vice president in the case the nominee wins. Here, there can be pledged or unpledged delegates; pledged ones are bound to support the potential candidates they chose in the previous round, while the unbound, or superdelegates can support anyone they choose.

Electoral College: After each of the parties have selected their presidential candidate, the candidate campaigns across the country to gain favor from the general public. There are speeches, rallies, debates, and other outreach activities, in which the candidates promote themselves. Meanwhile, the parties select some respective potential electors in each state, which are the people who get the last vote in the selection of the president. Each party forms a slate of potential electors according to the state..

General Election:After this, the general election occurs, in which the public votes for a president. However, the public does not directly vote for the president; they vote for the slate of electors for that political party for that state.

After the general election, the Electors are appointed to the state in two ways.. Electors from all the states then form the electoral college, which is the body that votes for the president. The electors are not legally bound to vote for the party they are pledged to, but can be fined or disqualified if they defect. Throughout USA history, though, more than 99% of the electors have voted as pledged.

The electoral college presently has 538 electors and the candidate who wins 270 or more electoral votes, wins the Presidential election.

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