ADVOKS GLOBAL · KENYA
Microfinance Act
53. Consumer protection
Edition: 2024-12-27 · In force
53. Consumer protection
(1)A non-deposit-taking microfinance business shall exhibit transparency in dealing with the public and in particular shall—(a)furnish borrowers with accurate information on the procedure and conditions for lending and recovery;(b)inform borrowers, prior to the acquisition of a loan, of the financial costs associated with the procurement and servicing of that micro-loan to be met by the borrower;(c)maintain confidentiality of information relating to borrowers; and(d)inform borrowers of the rights and duties associated with the acquisition of loans.(2)A non-deposit-taking microfinance business shall, in the course of debt collection or loan recovery—(a)not harass, abuse or oppress a borrower, guarantor or any person in connection with collection or recovery of a debt;(b)not threaten or use violence or illegal means in collection or recovery of a debt; or(c)not use obscene or profane language to a borrower, guarantor or any person in connection with collection or recovery of a debt.(3)A non-deposit taking microfinance business shall comply with the requirements of Article 31 of the Constitution and the Data Protection Act in lending loans and recovery of debts.(4)A non-deposit-taking microfinance business shall not collect interest, fees, charges, penalties, levies or expenses unless such interest, fees, charges, penalties, levies or expenses are prescribed in an agreement between the non-deposit taking microfinance business and the borrower.