October 29, 2021Kenya
Kenya: Digital lenders risk ban for revealing borrowers
Rogue digital lenders who share personal data of loan defaulters will be stripped of their operating licenses if Parliament passes proposed changes to the law to curb abuse of confidential records.
The National Assembly committee on Finance and National Planning has added a clause to the Central Bank Amendment Bill 2021, granting the banking regulator powers to revoke the permits of digital lenders who breach the confidentiality of personal information to pursue defaulting borrowers.
– The Data Protection Act bars sharing of data with third parties without consent and gives individuals the right to be told when their data is being shared and for what purposes.
– The Data Protection Act further compels firms to disclose to individuals and customers the reasons for collecting their data and ensure that the confidential information is safe from infringement by unauthorized parties.
