- The Senate has been petitioned to fast-track the enactment of a legislation to regulate the credit profession and protect consumers from exploitation.
- Benard Magembe, a petitioner, on behalf of the Council of the Institute of Credit Management Kenya (ICM-K) want the law passed to control the profession.
Image: EZEKIEL AMINGÁ
The Senate has been petitioned to fast-track the enactment of a legislation to regulate the credit profession and protect consumers from exploitation.
Benard Magembe, a petitioner, on behalf of the Council of the Institute of Credit Management Kenya, wants the law passed to control the profession and tame rogue lenders.
“The petitioners pray that the Senate enacts legislation to regulate the credit profession and specifically provide for the following, among other relevant provisions,” Magembe said in his petition.
Magembe argues that credit professionals do not have a guiding statute that regulates the credit profession to ensure high professional standards among practitioners in the sector.
This has exposed consumers to several risks, including breach of transparency, unconscionable conduct and loss of assets, which can be mitigated by having certified credit professionals.
“The enactment of legislation regulating the great profession will establish a recognised legislated position of credit professionals in matters credit and debt management,” reads the petition.
The petitioner averred that the legislation will provide a qualified and well-regulated credit profession, as well as provide accountable, reliable and certified credit professionals, among other benefits.
Reacting to the petition, senators said regulating the credit sector was long overdue to deal with rogue creditors exploiting their customers.
“There are so many shylocks in town calling themselves credit bureaus that prey on innocent Kenyans. The interest they charge the poor Kenyans out here is exorbitant and unreasonable,” Nyamira Senator Okongó Omogeni said.
The PSC Commissioner regretted that many Kenyans have been subjected to untold pain, suffering and frustrations in the hands of rogue lenders.
“If you borrowed Sh100,000, they will want you to pay Sh500,000. It is not something we should allow really as parliamentarians. There is a lacuna here and we have been given a golden opportunity to address this issue,” he said.
Senate Majority Whip Boni Khalwale (Kakamega) said putting in place a law will tame conmen who capitalise on financial illiteracy to exploit Kenyans.
“To avoid these conmen, every Kenyan needs to know that any time you have some money—it does not need to be much—you have to know how to manage it. That management includes an idea of how you will spend it,” Khalwale said.
Vihiga Senator Godfrey Osotsi called for interrogation of other professional bodies including the Institute of Certified Public Accountants of Kenya.
Osotsi called for care in enacting the legislation.
“We do not end up having so many legislations on the regulation of professions when they can best be done under one big professional organisation,” Osotsi said.