The Digital lenders in the country have come under fire over unethical debt collection practices and abuse of personal information.
Speaking during an international debt collection conference held at a Nairobi hotel on Tuesday, players in the industry asserted that the law must be followed even when pursuing loan defaulters.
“We must work in a way that is friendly to all parties involved. People should not view us as enemies when we are doing our job,” said Nikolay Melnikov, the CEO of Debt Holding Group.
Debt Holding Group is an international network of professional debt collection agencies headquartered in UAE-Dubai.
The conference brought together financial institutions, creditors, and stakeholders in the debt recovery industry.
The meeting was organised by EXPALUX, a FinTech consultancy firm registered in Singapore with a footprint in Africa and Asia. A similar conference will be held in Kampala, Uganda on October 28, 2022, at the Kabira Country Club.
Melnikov called on debt collectors to work within the legal framework of the regions they operate in, and said those who violate laws should be punished.
“We are having these meetings to discuss ways of improving how people view us. We should be seen as helpers and not enemies,” he stated.
Jeremiah Kayago, CEO of Debt Holding Kenya, said concerted efforts are being made by various stakeholders “to dignify debt collection.”
“In Kenya, we are seen as intruders, people who just like bothering others. We are unwelcome everywhere we go,” he lamented.
One of the objectives of the conference was to develop professional debt collection practices in Kenya.
Digital lenders in Kenya have also been accused of debt-shaming borrowers in a bid to recover defaulted loans.
They have further been cited for not disclosing the full terms of their credit leading to costly interest rates that rise up to 520 per cent when annualized.
New laws bar lenders from sharing borrowers’ information with third parties. Lenders are also required to seek the Central Bank of Kenya's approval for interest on their loans.
