“App lenders sign code of conduct, commit to responsible lending practices”

Members of the Digital Lenders Association (DLAK), on Thursday signed on a code of conduct and announced plans to adopt a self-regulatory framework and a set of shared principles to guide members. Speaking during the formal launch of the Association, DLAK Chairman and Zenka CEO Robert Masinde said that the code of conduct will promote ethical business practice and broadly addresses emerging consumer protection issues. “At the heart of the code is a requirement for consumer protection. It requires digital lenders to practice responsible lending, disclose standardized pricing, improve transparency and fairly resolve customer disputes while respecting the spirit of self-regulation and raising the bar on ethical lending,” Masinde said.

The association has a committee in place to call out signatories it finds to be non-compliant. Currently, 13 members have signed the code of conduct and are working in compliance with the code. “The code we have signed today requires members to comply with a series of best practice principles when dealing with customers. Members who do not adhere to the Code will be publicly disbarred from the Association,” said DLAK Vice Chairperson and HF Group Chief Digital Officer Rose Muturi. Muturi added: “We are proud to be working together to take proactive steps to bring transparency to the market, and ensure we’re doing what’s best for our customers.” The digital lenders move to form the association is informed by the decision by the CBK to regulate the sector following complaints of exploitation by the public.