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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Bengal Elections: Will there be a transfer of power or TMC’s will rule continue?
As the assembly elections in West Bengal are getting closer, the competition between the Bharatiya Janata Party (BJP) and Trinamool Congress (TMC) is getting more intense. This election and its result will be historic. Whole nation is looking forward to the Bengal Elections keenly.
Recently, there was a lot of hue and cry by the BJP when some people allegedly tried to attack the BJP party president JP Nadda's convoy near Diamond harbour in West Bengal. While the BJP labelled the attack as a “sponsored violence”, CM Mamata Banerjee called it a “drama” staged by the BJP to gain media attention. But apart from all this, there are other things which make this election important.
Other than the BJP and the ruling TMC, there are other players as well – Left Front, led by CPI(M), Congress Party, AIMIM.
The situation of the Left Front and the Congress
Rally of Congress and Left Alliance | Source: IBTimes
In the 2019 Lok Sabha elections, the Left Front did not win a single parliamentary seat. Also, except the Jadavpur constituency, it lost all its deposits in all the seats. The Indian National Congress, which is its alliance partner, did not fare well as well and managed to get two seats only. In the upcoming 2021 assembly elections, the two parties have again joined hands, and this time, it’s not just about the electoral victory, but also about maintaining their relevance in the state.
The Left Front, which used to be a major party in the state and ruled for decades, is now seeing an existential crisis. Their first aim is to retain themselves as the main opposition party of West Bengal. Mamata Banerjee’s thumping victory in the 2011 elections marked the end of the Left rule in West Bengal. In the 2016 Assembly Elections, Trinamool Congress had a landslide victory, whereas the BJP got only two seats. But now, the BJP is emerging as the main opposition to TMC, which should be a matter of concern for the Left Front which is losing ground. In an article by The Quint, CPI(M) leader Shatarup Ghosh said, “Of course the BJP is our main opposition—not just in West Bengal but also nationally. They are ideologically and politically completely opposed to us. But that being said, we are not ready to give an inch to Mamata Banerjee either. The TMC needs to go, but they can’t be replaced by the BJP. That is our position”. The Left also alleges that TMC violence against them increased especially after 2016. “At this point, because we couldn’t function in full strength, there was a void in the space of the opposition. The BJP came in at that point and said that they’re running the centre, have CBI, ED and other machinery and can help fight the TMC in a way that the Left can’t. Those who wanted to vote against TMC, therefore, naturally went to them”, he adds.
The Indian National Congress has ruled West Bengal first from 1947–62, and then again from 1972–77. After that, Congress has not performed well in the elections here.
Rise of AIMIM in West Bengal
Asaduddin Owaisi, the face of AIMIM | Source: Wikimedia
All India Majlis-e-Ittehad Ul Muslimeen– better known as AIMIM, has seen a rise recently outside their home state, after winning 5 seats in the Bihar elections. Party President Asaduddin Owaisi held a meeting with AIMIM West Bengal party functionaries for taking their views with regards to the upcoming elections and political situation in the state, calling it a “fruitful” meeting.
On AIMIM focusing on Bengal Elections, TMC MP Saugata Roy took a jibe at the party’s chief and called him “an assistant of the BJP, who is being used by the latter to split non-BJP votes”.
Muslim votes are crucial for the TMC. AIMIM senior leader Syed Asim Waqar tweeted, telling Mamata Banerjee’s party that their enemy is the same, the BJP. Aurangabad MP and AIMIM Maharashtra President Imtiaz Jaleel tweeted: "Bihar tou jhaaki hai...WB, UP baaki hai" (Bihar is just the beginning, West Bengal and Uttar Pradesh are remaining). Other than this, party chief Owaisi recently said that it has been the consistent stand of the party that it would not contest elections in Assam and Kerala, as AIUDF and the Indian Union Muslim League are present in the two states. These points clearly show which states the party is aiming for.
Muslims form about 27% of the West Bengal state population, but still remain underrepresented. They account for only 6% of government jobs. Although their representation has been better under the TMC, they still need improvement in the representation for the betterment of their community.
BJP and TMC
CM Mamata Banerjee (L) and PM Narendra Modi (R) meeting | Source: Wikimedia
Recently, TMC MLA Suvendu Adhikari—along with 23 others—joined BJP, at Home Minister Amit Shah's Midnapore rally, as a major blow to Mamata Banerjee and the TMC. Shah alleged that Mamata Banerjee has changed her party’s slogan from “Maa, Maati, Manush” (Mother, Earth, Humanity) to “extortion, corruption and pandering to the nephew”, targeting Banerjee’s nephew and MP Abhishek Banerjee.
The BJP increased its seats from 2 to 18 in West Bengal in the 2019, which came as a surprise. Almost 57% of Hindu votes went to the BJP, and 32% to TMC. The party is trying to woo Hindus and also the Hindi-speaking population of West Bengal. Recently, BJP-supported Hindutva organisations such as the VHP, Bajrang Dal and the RSS, which had only a little presence in the state, have become more assertive, as was seen through their armed processions for Ram Navami.
To keep a check on the saffron party’s rise, the Mamata government made sure to announce new schemes and that the previously implemented policies remain fresh in the minds of the people. Recently, the TMC released its 'report card' on the work they have done and the promises kept. They have mentioned the 'Sabujsathi' scheme in it, which, according to the Mamata government, has been fulfilled. In this scheme, bicycles were to be distributed among approximately 40 lakh students from classes 9th to 12th studying in govt run and govt aided schools in West Bengal. The scheme was launched in September 2015. A scheme called “Swasth Saathi” was launched recently by the West Bengal government, as the BJP attacked the government by saying it did not implement the Ayushman Bharat scheme of the central government.
Even after opposition from newly emerging parties in the state, like the BJP and AIMIM, other than that from the already existing parties, the Left Front and the Congress, the TMC is trying to remain optimistic about their third term. Who’s winning? Only time—and the people of West Bengal—will tell.
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