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Mobile lenders suspend late penalties


Mobile lenders have suspended late payment fees to amortize customers whose income has been disrupted by the impact of the coronavirus shutdown. PHOTO FILE | NMG

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Summary

  • Mobile lenders have suspended late payment fees to amortize customers whose income has been disrupted by the impact of the coronavirus shutdown.
  • The Digital Lenders Association of Kenya (DLAK), which represents 17 major digital lenders, said relief would be communicated by the respective providers.

Mobile lenders have suspended late payment fees to amortize customers whose income has been disrupted by the impact of the coronavirus shutdown.

The Digital Lenders Association of Kenya (DLAK), which represents 17 major digital lenders, said relief would be communicated by the respective providers.

“This move will cushion customers in distress, following the downturn in the economy after disruptions to their operations that could have had an effect on regular income streams,” the association said.

Tala, one of the members, charges eight percent of the remaining fee balance for one-week delays, after which the payment is delayed by two weeks.

Client is demoted to lower loan limits or may not get a subsequent loan.

Zenka charges late payment interest of one percent per day on the principal outstanding.

Okolea says borrowers who don’t repay on time go to debt collectors and credit reference bureaus (CRBs).

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M-Shwari offered troubled borrowers one month of late payment penalty relief.

Its borrowers will not be charged an additional 7.5% fee if they renew their debt.

President Uhuru Kenyatta has ordered the suspension of registration with CRBs of all individuals and businesses whose loan accounts are due or past due.

TransUnion Credit Reference Bureau estimates that digital lenders represent 90% of the 3.2 million Kenyans listed.


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