Sunday, July 12, 2020

Kenyans turning to mobile loans in times of COVID-19

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Article Contributor(s)

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 4:51 PM

Binge Food Eating: A Modern competitive sport in the USA

Eating food as a professional sport may seem odd to a lot of people, but many such competitions exist today in the USA. While competitive food eating contests have been around for years, it was only in the late nineties that it got the status of a sport. There is even an organisation named “Major League Eating” headquartered in New York which governs all eating competitions worldwide since its foundation in 1997.

It's not just about the participants. The sport has got its fair share of the audience too, particularly in the US.  Some of the most popular contests include Nathan’s 4th of July International Hot Dog Eating Contest, the Zombie Fest at Long Beach, California, The World Slugburger Eating Championship, in Corinth, Mississippi, The World Famous St. Elmo Shrimp Cocktail Eating Championship, Indianapolis, and many more.

And the insane records that people make at these competitions might just blow your mind away. For instance, Joey Chestnut holds the record for eating 70 hotdogs and buns in 10 mins in 2016 at the Nathan’s Famous Fourth of July International Hot Dog Eating Contest. Matt Stonie holds the record for devouring 43 slug burgers in 10 minutes at The World Slugburger Eating Competition in 2014!  Looks insane? Well, it's just one of those things that make America so great! Or does it?

While competitive eating has truly become a huge affair in the United States, many people are particularly skeptical of the same. Many animal rights groups question the morality of such competitions wherein so many animals are consumed in such a short time. Others have the issue of the sport being offensive to people who cannot afford to have enough food in a day. However, the biggest argument against these eating competitions is how they have become a symbol of freedom. The critics say that freedom from unnecessary regulations makes sense in the context of a free democratic and liberal society, it does not mean that we indulge in a gross display of excessive consumption.

The dangers associated with the sport are not limited to morality and freedom. People who participate in the contests have to go through potentially injurious training to stretch their stomach for the sport. These training regimens include consuming more than a gallon of water, eating 200 chicken wings, and the list goes on.

Despite all the dangers associated, the sport continues to grow and thrive. The raging rivalries between participants like Joey Chestnut and Matt Stonie make then Lionel Messi and Cristiano Ronaldo of the competitive food eating. With the audience base steadily growing over the years, Competitive Eating has truly become a phenomenon in the United States. Riding on the increasing popularity of this sport, Nathan’s saw a monumental increase in their hot dogs’ sales from 250 million to a billion between 2003 and 2014,when the competition was broadcasted on ESPN .

It all boils down to the numbers of the loyal fan following which a sport or sports-person commands. As long as there are people who enjoy watching food being stuffed in insane amounts as a sport, there will always be people ready to make money by contesting and organizing these festivals. After all, that is the beauty of corporate America- whatever sells, will stick around!

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