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

Alija Izetbegović: Journey from prison to Bosnian Presidency

In a world that still holds up the burden of racisms and prejudice, the struggle of vanquishing differences between various religious sects and political groups that emerged vibrantly back in the late 20th century sets an exemplary path for leaders today to follow.

The legendary Bosnian leader, Alija Izetbegović, who dedicated his entire life in the process of protecting human rights of Bosnian Muslims who were subjected to brutal crimes and violence by the neighboring countries, with his visionary and revolutionary thoughts played an important role during the dramatic changes that took place post the World War II.  

Born in 1925, Alija was always driven by his strong moral compass. For him, his ethics and his moral principles served him as a winning weapon in all battles. According to him, ethics added meaning and purpose to life.

He studied from the ‘University of Sarajevo’ with a degree in arts, laws, and science. His life journey began when he first appeared in the frontline as a civil right activist of an organization established by Sheikh Muhammad Kharji and Sheikh Cassim Dobreje.

It was in 1946 that he was first arrested when he was a twenty-one year old youngster. He was condemned for being a part of a group/organization that expounded religious freedom and human rights. He was sentenced to jail for 3 years. Unfortunately, this wasn’t an end to his hardship. In 1949, young Izetbegović was once again imprisoned, as per the orders received from a special military court. This time he was given a five-year sentence. His crime - active support behind the Young Muslim Organization. Izetbegović spent his youth behind the bars thinking and strengthening his spirit of establishing a multicultural Bosnia once again.  

Later in August of 1983, Izetbegović along with eleven other scholars was sentenced to 14 years in prison. It was during this time that Izetbegović wrote his book, “Notes from Prison: 1983-88”. In his book, he encompasses his experience at the prison cell and how resistance grew in him during all these years.

Izetbegović soon faced national and international Media under his virtue of engagement with the social and political affairs of the country. In 1990, he founded the Party of Democratic Action (SDA) and won the elections with a majority in 1992. The man who spent years in jail yet, filled with optimism and encouragement, had made it through all the agonies and challenges life put him through. With his party gaining central power, Izetbegović was elected as the first President of the country. Later, he also announced Bosnia-Herzegovina an independent republic.

Although Izetbegović was now the president of a young republic country, an end to criticism and racial crimes was not yet achieved. During the Croat-Bosniak war in 1993, the Croats destroyed the Mostar bridge (also known as Stari Bridge). Underlining their catastrophic act falsely as strategically driven, the Croats through this destruction attacked the symbolic importance of the Bridge, which was to connect diverse communities across it.

Despite the sustained attacks and strenuous efforts of the neighboring countries to curb rising unity and ethnicity in Bosnia, the Bosnian Leader always taught his fellow countrymen and soldiers to be superior morally first. He believed that it is this superiority that will fetch them their ultimate goal. For him, instituting peace was a fundamental duty, a greater win, or “greater jihad” over any other military victory. Rising international pressure ultimately brought peace in 1995.

Finally, he stepped down from the presidential throne in 2000. After he grimly fell ill, the greatest revolutionary thinker died in 2003. His eternal story of life struggle is inspiring, making him worthy of the title “wise king”.

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