12 leading digital lenders in Kenya have today announced the launch of umbrella welfare entity, Digital Lenders Association of Kenya (DLAK).
According to the lenders, the welfare body is to promote industry best practice and drive a coordinated approach in addressing the emerging industry’s pressing issues.
It might not be to the advantage of consumers as many struggles with unclear or ever-changing loan terms offered by the lenders. Most of the digital lenders have terms which they are ambushed with after committing.
Incorporated in 2019, DLAK brings together leading digital-first lenders and other key stakeholders including;
- Tala, Alternative Circle, Stawika Capital, Zenka Finance, MyCredit, Okolea, LPesa, Kopacent, Four Kings Investment T/A Sotiwa, Mobile Financial Solutions (MFS), Kuwazo Capital, and Finance Plan Ltd.
DLAK claims to represent and promote the interests of digital lenders, consumers, and the digital lending industry, something which is unclear as the digital lenders have just been known to exploit their clients.
DLAK might be the largest grouping of an exploitative cabal of service providers, out to squeeze lie off the already stressed digital loan consumers (borrowers).
In an announcement, the following are the founding officials;
Chairman of the newly launched DLAK is Zenka Finance CEO Mr. Robert Masinde while its strategy, as well as the issues to be addressed, will be determined by a Strategic Committee in which each member company will be represented by its institutional head (CEO, Managing Director, Country Manager, etc) or another member of their Executive Board.
Currently, the Strategic Committee consists of Robert Masinde (CEO Zenka), Rose Muturi (Vice Chairperson and Chief Digital Officer HF Group), Kevin Mutiso (CEO Alternative Circle), Allan Mukui (CEO Kuwazo) and Ivan Mbowa (Regional Country Growth Manager Tala).
We will wait and see if DLAK will bring positivity to the already soiled and exploitative industry.