If the Committee’s report is adopted by the house, mobile lending apps will be regulated by CBK and CA. “The Central Bank of Kenya and the Communication Authority audit all unregulated money lending fintech firms which leverage on mobile platforms and subject them to the applicable money lending regulations within six months,” read the report into the legislative and regulatory gaps affecting competition in the telecommunications sector.
There are about 45 mobile digital lenders in the country operating in a regulatory lacuna. The committee has been looking into the legislative and regulatory gaps affecting competition in the telecommunication sub-sector. At the center of the inquiry is a directive to the two regulators to explore modalities of structuring and implementing sharing of mobile money agents. The report comes months after telco players appeared before the committee to discuss a document commissioned by CA that had declared Safaricom a dominant player.
In the far-reaching recommendations the Committee chaired by William Kisang wants CA to be compelled to submit bi-annual reports to the House on whether a dominant player exists in the market after it has ascertained the level of competition among telecommunication service providers.