- Digital Credit Providers have warned that Kenyans may start receiving Sh940 and paying back Sh1,200 for every Sh1,000 borrowed, should Finance Bill 2023 be passed by MPs.
- Under the bill, digital lenders will from July 1, 2023 be required to pay 20% excise duty on their loan interest as well as on their fees.
- DFSAK has described the proposed changes as “discriminatory” and unfair.
The Digital Financial Services Association of Kenya (DFSAK) has raised concerns over a proposed 20% duty to be imposed on digital loans customers, should Finance Bill 2023 be passed.
“The most affected are going to be informal sector entrepreneurs; mama mbogas, boda boda riders, traders, micro and small enterprises - Kenyans who weren't able to get loans from banks a few years ago.
"Over 8 million Kenyans who rely on our loans every month are going to be negatively affected,” DFSAK chairman Kevin Mutiso stated in a dispatch to newsrooms.