Most recently, the Central Bank of Kenya and the Kenyan Bankers Association launched the credit information sharing initiative. The first credit reference bureau, The Credit Reference Bureau Africa Limited, was licensed in February 2010 (44). [1] Such institutions allow for credit information sharing between financial institutions making it easier for information about clients to be disseminated. The Central Bank of Kenya states that such an innovation will lead to cheaper credit for consumers as “information symmetry lowers the risk premium and search costs loaded in the cost of credit.” Thus, more consumers will be able to access credit at increasingly affordable rates (45). [2]
If such an initiative is made to protect banks, why not create a resource for clients to learn more about their banking institutions, specifically about credit and other financial products? Such a resource could serve as an educational tool that offers consumers the opportunity to protect themselves and their valuables, save money and access credit at a rate that they can afford through becoming educated about the microfinance industry. During this project, I inspire to create such as a resource through this consumer manual.
While working to create a consumer education manual, I have learned of another organization that is doing great work with similar objectives. Next month, Microjustice For All, a non-profit organization that provides legal services for low income individuals in developing countries, will launch the Fair Kampaign in Kenya.
Microfinance institutions, lawyers and consumer advocacy groups will meet in Nairobi, Kenya to discuss loan contracts used in the Kenyan microfinance industry to improve upon client protection measures such as debt counseling and to create fair contract guidelines. I am excited about the opportunity to learn from such an organization that is dedicated to using collaboration between different stake holders in microfinance to improve upon consumer protection for clients. Please visit http://www.microjustice4all.org/ and http://www.fairkampaign.org/ for more information.
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