Fintech lending in Kenya - an analysis of the gaps in consumer protection regulation

Abstract

Traditional banks are sufficiently regulated compared to fintech. This is both an advantage to fintech as it allows for financial inclusion but it is also a disadvantage as consumers are exposed to risks. However, if fintech lending is overregulated, it will cease to have its current advantages such as financial inclusion over banks. The overarching issue, in this case, is how far the law and regulation should go in bridging the gap. To this end, this study explores whether consumer protection in fintech lending is predicated on incorporating efficient regulations to seal the potential and existing gaps. In assessing the viable and feasibility of regulations, this thesis relies on the lessons from other jurisdictions such as South Africa and the UK that have enriched strategies capable of being adopted in regulating fintech lending in Kenya.