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 4:52 PM

Persecution of Uighur Muslims in China and the silence of Muslim Countries

Uighur are natives of  Xinjiang province of China who are Muslims and regard themselves as culturally and ethnically close to Central Asian nations. Xinjiang province has been under the control of China since it was annexed in 1949 and many Uighurs still identify their homeland by its previous name, East Turkestan. There are around 11 million Uighurs in Xinjiang and China claims that Uighurs hold extremist views that are a threat to national security.

In 2017, the Xinjiang government passed a law prohibiting men from growing long beards and women from wearing veils and dozens of mosques were also demolished.

As per the report of UN Committee on the Elimination of Racial Descrimination, the Chinese government has detained at least one million Uighurs in the detention camps in Xinjiang, China. After denying the existence of the camps for a long time, when the photos of the camps emerged, the Chinese government called them “re-education centres'' for Uighurs though the former detainees said they were detained, interrogated and beaten because of their religion, and not “re-educated.”

In July 2019 to the U.N. Human Right Council, 22 countries, mainly European countries, responded to “disturbing reports of large scale arbitrary detentions of Uighurs” and condemned the Chinese leadership.

Four days later, 37 countries, defended China’s “remarkable achievements in the field of human rights” by protecting the country from “terrorism, separatism and religious extremism.” The list of the 37 countries also included Muslim-majority countries like Saudi Arabia, Pakistan, Egypt, Qatar etc.

At the end of October 2019, 23 countries including France, the United Kingdom, United States denounced the repression of the Uighurs at the UN Committee on Social, Humanitarian and Cultural Affairs. Nevertheless, Beijing won the support of 54 countries, who praised the Communist Party’s management of Xinjiang.

In February 2019, Saudi Arabia showed their “respect” for Xi Jinping, the Chinese leader before they signed major commercial contracts with China. Egypt wants Beijing to finance its infrastructure and hence allowed the Chinese police to interrogate Uighur exiles on its soil in 2017. Pakistan, who has talked about the mistreatment of Rohingyas, has been silent on Uighurs since the Chinese Belt and Road Initiative is going on in the country.

Even Iran, who issues occasional criticism wants support from China and hence keeps the criticism coded. “There is a lot of sympathy for the Uighurs in Turkey, but the reality is that Erdogan needs China as an ally for economic reasons and to counteract the West’s diplomatic pressure on issues like Syria,” said Rémi Castets, a political scientist.

In 2017, the Organisation of Islamic Cooperation responded very differently to the Rohingya Crisis (Myanmar’s military crackdown on the country’s Rohingyas), where countries like Saudi Arabia, Iran and Turkey defended the rights of the Muslim minority group in Myanmar and actively condemned the treatment of Rohingyas in the UN Human Rights Council in Geneva.  

The question here arises is that contrary to the sentiments of their citizens, why do Muslim states stay silent over China’s abuse of the Uighurs?

Sophie Richardson, the director of China at Human Rights Watch, has a short and simple answer — there is less solidarity for Uighur than Rohingyas or Palestinians because China has managed to win these countries’ support due to its economic might.

Only time will tell how long these countries will continue to give preference to the economic interests over the anti-China sentiments of the citizens.

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