Upon decision with a staff member of Consumer Information Network
(CIN), a Kenyan consumer organization, I recently learned that the
Commission for Implementation of the Constitution (CIC) made the
decision to remove the Credit Section of the current working draft of the
Consumer Protection Bill. The Credit Section contained various financial
based rights for the consumers of credit.
The reason for this decision is to put the responsibility of financial based
rights in the hands of the financial sector. The staff member of CIN
justified the decision by writing that "[t]he reason as to why we [at CIN]
agreed on this [decision] is because consumer issues are vast and diverse
and can therefore not be taken care of in a single legislation." The argument
is that the credit section was too specific for the bill.
I can understand the position of the CIC. I was not satisfied with the provisions
of the credit section of the bill; there was much need for improvement (see
my previous blog posts). This decision of the CIC would give the opportunity
for current legislation and regulations of the financial sector to be amended to
ensure financial based consumer rights.
The CIC decision is also unfortunate because the new constitution requires a
consumer protection bill, thus ensuring consumer protection will soon be a
reality for consumers. It is a shame that consumers will have to patiently
wait once again until their rights in the financial sector will be protected.
(CIN), a Kenyan consumer organization, I recently learned that the
Commission for Implementation of the Constitution (CIC) made the
decision to remove the Credit Section of the current working draft of the
Consumer Protection Bill. The Credit Section contained various financial
based rights for the consumers of credit.
The reason for this decision is to put the responsibility of financial based
rights in the hands of the financial sector. The staff member of CIN
justified the decision by writing that "[t]he reason as to why we [at CIN]
agreed on this [decision] is because consumer issues are vast and diverse
and can therefore not be taken care of in a single legislation." The argument
is that the credit section was too specific for the bill.
I can understand the position of the CIC. I was not satisfied with the provisions
of the credit section of the bill; there was much need for improvement (see
my previous blog posts). This decision of the CIC would give the opportunity
for current legislation and regulations of the financial sector to be amended to
ensure financial based consumer rights.
The CIC decision is also unfortunate because the new constitution requires a
consumer protection bill, thus ensuring consumer protection will soon be a
reality for consumers. It is a shame that consumers will have to patiently
wait once again until their rights in the financial sector will be protected.
If the responsibility is now in the hands of the financial sector, when will
legislation and regulation be amended or drafted to ensure the rights of
consumers are protected? How long does the financial consumer have to
wait?
I argue that financial education, the main goal of my project, is only one
part of the equation to ensure consumer protection. Getting individuals to
change their behavior is difficult and not every consumer has the same
knowledge about the financial sector and its services.
Government also has a role in protecting the consumer. Thus, it is vital that
protection for financial consumers should be upheld through increased
transparency and regulation. The current legal framework of the financial
sector in Kenya has limited, very limited, protection for consumers.
As the CIC now puts the responsibility of financial consumer interests in
the reformation of the financial sector, I hope that the financial based
rights as represented in the Credit Section will be improved upon and
implemented sooner rather than later.
Really like your blog. We do a lot of work in Kenya on consumer education and protection - I thought you may like to see our latest film on this: http://youtu.be/9DbJVjjp4F0
ReplyDeleteThanks so much for your interest in my blog. I am currently working with two member organizations of Consumers International, so I am well aware of your organization's work. The video is one of the great tools that CI provides to the public. As a consumer and researcher, thank you. If you would like access to the consumer education manual that I wrote for microfinance borrowers, please visit this site www.kenyamicrofinanceguide.com. I hope it can be of assistance to Consumers International.
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