Kenya: outcry over mobile credit debt collection tactics

24 May 2019

The practice of mobile lenders sending messages to everyone in the mobile borrowers phonebook has ignited debate in the country, catching attention of legislators.

Kenya has over 80 mobile applications, who typically offer unsecured micro loans after analysing a prospective borrower’s digital data. The loan is delivered and paid through mobile money. Such loans are popular among young people who are first time borrowers as well as small traders. Mobile microloans have been lauded for expanding financial inclusion.

While some loan apps are owned by banks, many mobile loan apps exist independently. They do not take deposits and only offer unsecured loans, based on one’s digital footprint. They are regulated by legacy microfinance laws and they report borrowers credit history to a statutory body, Credit Reference Bureau. The apps have taken to sending messages to persons in the borrower’s phone address book as it is a more effective way of reaching borrowers, with whom they do not have other relationships (such as banking or savings) with.  A typical message from the apps includes the debtor’s name, their phone number, loan amount and disclosure that the borrower has defaulted on repayment.

Legislators are now mulling over policy interventions to protect the public from unfair practices.

Explore the issues

Privacy and data protection are two interrelated Internet governance issues. Data protection is a legal mechanism that ensures privacy. Privacy is usually defined as the right of any citizen to control their own personal information and to decide about it (to disclose information or not). Privacy is a fundamental human right. It is recognised in the Universal Declaration of Human Rights, the International Covenant on Civil and Political Rights, and in many other international and regional human rights conventions. The July 2015 appointment of the first UN Special Rapporteur on the Right to Privacy in the Digital Age reflects the rising importance of privacy in global digital policy, and the recognition of the need to address privacy rights issues the the global, as well as national levels.


The GIP Digital Watch observatory is provided by



and members of the GIP Steering Committee


GIP Digital Watch is operated by

Scroll to Top