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 4:37 PM

How the conservatives and white supremacists responded to “Black Lives Matter” movement

The civil rights movement in America labelled “Black Lives Matter”, which erupted after the murder of George Floyd by a uniformed officer has been going in full swing. The event of Floyd’s death triggered a mass reaction against the state violence in which black people are abused without any accountability on the police’s part. A few of the protests have been demanding the defunding of the police department, that the police force should be dissolved.

Many protests are peaceful protests, but there have been instances in which the protestors use violence to express their sentiment. Such protests have received a lot of backlash; Donald Trump, the president, said that “these THUGS are dishonouring the memory of George Floyd” and that “when the looting starts, the shooting starts”. He also mentioned that he would send the National Guard to “get the job done right”, in context of his perceived lack of leadership in Minneapolis where Floyd was killed, and consequently, where the protests were taking place. The tweet with the slogan “When the looting starts, the shooting starts” has since been censored by twitter, which gave birth to another controversy.

Trump also blames the riots on Antifa, which is a terrorist organisation according to him, the name of which stands as a short form of anti-fascist. The organisation is a group of leftist activists who protest against an expression of what they find xenophobic, racist or sexist and fascist, claiming that such expression would suppress minority voices. There is no defined hierarchy or membership process, though it has been claimed by the group that it is secretive and is organised into autonomous local cells. In some reports, though, it is categorised as a far left militant organisation which believes in direct action rather than peaceful protests.

The police force in Minnesota believes that there are white supremacists attending the protests to agitate the protests and incite chaos. The Brookings Institution characterized the same as accelerationism, in which people incite chaos to destroy social order, so that in a highly polarized society, people would take their side. In the same vein, it has been reported that a white supremacist channel on Telegram incited followers to engage in violence and start a second civil war by shooting into the crowd. Franklin Graham, an evangelical pastor, has said that the idea of dismantling the police departments “has to be one of the most irresponsible ideas” that he’s ever heard. He says that the police are what stand between “us (the citizens) and total anarchy”.

An UK Member of Parliament told one of his constituents that while racism is a cancer, and I am glad the perpetrator is on a murder charge. Nevertheless, looters, arsonists and rioters have it coming.” While a number of celebrities have been showing support for the Black Lives Matter protests, the former Miss Universe Malaysia Samantha Katie James used instagram stories to say that the protesters who are angry over the murder of George Floyd are “foolish humans”, and that the black people chose to be born as colored people in America. She also said that the brutality should be taken as a challenge and that “the whites have won”. When asked to clarify what she meant by saying that the Black community chose to be born as coloured, she said that their soul chose where and how they were born.

The people are responding in many different ways to the news. On a Brietbart report on Samuel L. Jackson expressing his views in support of the protests, there have been comments which say that “Floyd was a criminal and he was high on drugs and that he was not killed by asphyxiation he had a heart condition.”(sic) or “When da White people start rioting? We are still the majority, and it would really stir up the fudge. These a****ts think they are getting away with something, but only because the silent majority has yet to speak… and act.” (sic).

It seems that George Floyd’s unfortunate death has brought out not just the simmering anger of the long black community in open but also unmasked the outright white supremacists as well as their apologists.

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