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 4:47 PM

Germany’s evolving fight against the far-right extremism

Several shocking incidents of attacks on racial or religious minorities in Germany are making headlines for the last few  years.

In June 2019, a pro-refugee regional official Walter Lübcke was gunned down at his home in Central Germany by a 45-year old man, Stephan-Ernt’s. According to the prosecutor, Dr. Walter Lübcke's argument in favor of accommodating refugees in the town of Lohfelden had instigated xenophobic and extremist thoughts in the mind of his killer.

Two people were killed by a heavily armed man during a failed attempt of massacre at a Synagogue in the city of Halle in October 2019. In yet another shootout, nine immigrants and ethnic-minority Germans were killed during an unrestrained shooting in Hanau on 19th February 2020.

The government investigations and media reports blamed individuals linked or influenced by the far-right extremists groups for these attacks.

In November 2011, government Investigations revealed that National Socialist Underground(NSU), a Neo-Nazi terrorist group has fuelled the Nazi idealogy for decades and is responsible for various killings including murders of immigrants and foreigners.

Another far-right group known as the Frietal Group, launched attacks on refugee shelter houses and political opponents in the town of Saxony in 2015, claiming that they are protecting Germany from foreigners.

The German law enforcement authority also arrested members of the Revolution Chemnitz in 2018, who were allegedly planning attacks on immigrants, journalists and political opponents. Eight members of the group were sentenced to several years in prison by a court in Germany on 24th March 2020.

Looking at the rampant spread of hate, Holger Munch, the president of Federal Investigative Police Agency of Germany (BKA), accepted that suspects of the right-wing extremist under the observation of BKA have increased from 4 in 2012 to 46 in 2020, adding that “the far-right poses a pernicious and growing threat with 3 acts of far-right violence every day”.

In order to curb the spread of hatred, xenophobia, and anti-semitism by the right-wing activists, the German Government drafted a nine-point strategy to combat the recent.

The key aspects of the nine-point strategy a) Internet Service Providers to report any hate speech forwarded/shared on Social Media or the Internet along with the IP address of the wrongdoer to the government authorities, b) Tighten Gun laws with a mandatory check on requests to keep arms by the domestic intelligence police (BfV) was another stance of the government, c) Revising the existing prevention programs aimed to tackle right-wing extremism, and d)  Special protection for the politicians at local, state, and federal level who were considered to be under the threat from right-wing extremists.

The BKA President, Holger Münch said that by deploying a police patrol team online just like police officers patrol streets, the government can ensure promising results. With the increase in funding and personnel in Germany’s security apparatus sanctioned in the state budget discussion 2020, Münch reflected optimism that agencies could now work better and more efficiently in battling crime and violence.

Keeping aside the various controversies, it is also imperative to acknowledge the efforts of Dortmund, a western city in Germany, in curbing the rising trend of far-right extremism. Dortmund being an important city in the country invited migrants from Turkey and Southeast. More than 3000 immigrants from over 70 countries including Iraq, Syria and Afghanistan live here making it a hotspot, attracting xenophonic and far-right crimes.

In 2015, a special task force was set up in Dortmund to take action against far-right extremists and the city to a large extent has been successful in curbing their activities. According to the city's police chief, Gregor Lange, Offenses such as sedition, verbal assault, racist propaganda, and damage to property were down by 25%. Violent crimes such as arson and bodily assault went down by 35% year-on-year. The drop is even more impressive compared to five years ago, when figures were 50% and 80% higher, respectively.

The success of Dortmund city in fighting far-right extremism gives a hope that the nationwide implementation of nine-point strategy will help in curbing the rising trend of violent extremism in Germany

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