KENYAN DIGITAL LENDERS CONDUCT ELECTIONS

DLAK elects new chairperson, sets sights on more consumer education
New leadership team to champion initiatives to promote economic recovery.

By Donald Kogai

Members of the Digital Lenders Association of Kenya (DLAK) have elected

Alternative Circle Chief Executive Officer Mr. Kevin Mutiso as the new

chairman of the Board of Directors. Mr. Ivan Mbowa, Tala Regional

General Manager was re-elected as Vice-Chairperson. The new leadership

will serve for one year.

Mr. Mutiso has previously served as a member of the board since the

establishment of the Association in 2019. DLAK brings together the

leading digital-first loan providers and associated stakeholders to

facilitate mutual growth in the digital lending sector in Kenya.

Since the establishment of the Association, the board has driven the

creation and adoption of a comprehensive Code of Conduct and ramped up

membership.

Speaking after his election, Mr. Mutiso said DLAK will maintain its

focus on constructive engagement with the government in developing

responsible regulation and deepening financial inclusion. He also

committed to support and promote ethical business practices in the

industry as well as consumer sensitization programmes.

“We stand ready to work with government stakeholders to develop

responsible regulation, reign in rogue players, promote fair industry

standards, and enhance the competitive landscape in order to increase

customer choice,” Mr. Mutiso said.

The new chairman also emphasized the need for pricing transparency

amongst the members as it puts customers in control and supports

competition on the basis of cost and value proposition.

“Our focus has always been to ensure every customer knows how much

their loan will cost in advance and allowing them to make fully

informed and value-conscious decisions.

This is part of our ethos for positive impact and is entrenched in our

code of conduct,” He added.

Members of DLAK work together to set ethical and professional standards

in the industry, to collaborate with policymakers and other

stakeholders in addressing cross-cutting issues, and to drive the

overall growth of the Fintech sector in line with the Economic Pillar

of the Vision 2030, MTP III, and the Big Four Agenda.

The Association is open to all ethical digital lenders subject to

signing and demonstrating a commitment to the DLAK Code of Conduct,

which covers granular requirements around the granting and repayment of

digital loans, consumer protection, marketing and advertising,

collaboration with stakeholders and regulators, and debt collection.

As the economy emerges from the adverse effects of the COVID-19

pandemic on the economy, DLAK members are aligned with the government

in leveraging technology to advance financial inclusion and empower

small businesses and individuals in a fair and responsible manner.

“The industry remains committed to supporting the business community,

especially small businesses and the informal sector to restart and

recover their businesses affected by the pandemic,” Vice-Chairperson

Mr. Mbowa said.

The new leadership team will be crucial in driving the industry to

provide leadership and engage other stakeholders in addressing a range

of industry practices that have the potential to cause harm to Kenyan

borrowers. These include concerns of opaque loan pricing disclosure,

problematic debt collection practices, violations of data privacy

expectations, loan stacking and related credit bureau challenges, and

the lack of oversight of bad actors.

The full list of the Board Members includes:

Alternative Circle, Chief Executive Officer, Kevin Mutiso (Chairman)

Tala, Regional General Manager, Ivan Mbowa (Vice-Chair Chairman)

Kuwazo Capital, Chief Executive Officer, Allan Mukui (Secretary)

Aspira, Chief Operating Officer, Irshad Muttur, (Treasurer).