CONSUMER BASED FINANCIAL RIGHTS.

 

As A Consumer, You Have Rights!

         Some of the rights recognized by the United Nations Guidelines for Consumer Protection are protected by financial legislation and regulation in Kenya.
                                                         

As a Kenyan financial consumer, you have the right to consumer education because…

Consumers in Kenya have the right to the information necessary to gain full benefit from goods and services.[1]

As a Kenyan financial consumer, you have the right to be informed because…

There are often specific requirements for financial institutions to formulate and follow well-defined credit policies and procedures.[2] This allows institutions to provide clear and truthful information in a timely manner to consumers.

Individuals have the right to access and request a free copy of his or her credit report maintained by a Credit Reference Bureau at least once a year.[3]

If an institution reports an individual to a Bureau, it must notify him or her within thirty days of its submission, including the contact information of the Bureau along with an explanation that he or she has the right to a free copy of the information provided to the Bureau and the right to dispute and correct the information held by the Bureau.[4]

As a Kenyan financial consumer, you have the right to redress and to be heard by your lender and financial regulators because…

Regulated financial institutions are forbidden to act in a reckless or fraudulent manner.[5] Thus, institutions must provide clear, truthful and timely information to consumers.

No financial institution shall make false representations or claims about accepting deposits from the public. Only regulated, licensed financial institutions can accept deposits from the public.[6]

If such a financial institution dissolves, clients have the right to seek compensation from the Deposit Protection Fund or the Deposit Guarantee Fund for his or her deposits that would have been paid had he or she demanded payment from the insolvent institution.[7]

Individuals have the right to challenge the information in his or her credit report maintained by a Credit Reference Bureau.[8] 

If an individual challenges the information in his or her credit report, the Bureau is required to investigate the dispute within fifteen days of receiving the written notice. If a Bureau finds an error in the credit report of the customer, it is required to correct the incorrect information. If the Bureau does not complete the investigation within fifteen working days of receiving the dispute, the Bureau must delete the disputed information from the report of the individual.[9]

A Bureau can charge the individual a reasonable fee for conducting an investigation of the disputed information in a credit report.[10]

Individuals also have the right to disagree with the findings of the Bureau upon the completion of its investigation. If the individual disagrees with the findings, he or she can write a statement that  the Bureau must attach to his or her credit report.[11]

As a Kenyan financial consumer, you have the right to safety because…

Financial Institutions and all Credit Reference Bureaus are required to treat client information with confidentiality and protect it against unauthorized disclosure.[12]  

As A Consumer, You Also Have Responsibilities.  

Consumer rights do not exist without consumer obligations.

Consumers have responsibilities while participating in the financial sector that they have to follow in order to enjoy their rights.

Remember as a financial consumer, you have the...

Responsibility to choose for yourself what financial services to use.

Responsibility to be critical in questioning or asking for information.

Responsibility to understand loan agreements.

Responsibility to comply with or honour loan agreements.

Responsibility to evaluate the costs of financial products before making any decisions.

Responsibility to treat your lender with respect as your lender must treat its clients with respect.

---

[1] The Constitution of Kenya, Article 46.

[2] Such requirement(s) can be found in the Banking Act, Section 4 (1 and 5); Microfinance Regulations 2008, Section 35 (3); Sacco Regulations 2010, Section 28 (2).

[3] Such requirement(s) can be found in the Banking Regulations 2008, Section 20 (1-3).

[4] Such requirement(s) can be found in the Banking Regulations 2008, Section 28 (1).

[5] Such requirement(s) can be found in the Banking Act, Section 11 (1A); Microfinance Regulations 2008, Section 32 (1-2); Sacco Regulations 2010, Part VI.

[6] Such requirement(s) can be found in the Banking Act Section 16 (1); Microfinance Regulations 2008, Section 3(1); Sacco Regulations 2010, Section 4 (1).

[7] Such requirement(s) can be found in the Banking Act Section 39 (2); The Microfinance Act 2006, Section 40 (2); The Sacco Societies Act 2008, Section 59 (5).

[8] Such requirement(s) can be found in the Banking Regulations 2008, Section 20 (5).

[9] Such requirement(s) can be found in the Banking Regulations 2008, Section 20 (5-12).

[10] Such requirement(s) can be found in the Banking Regulations 2008, Section 20 (14).

[11] Such requirement(s) can be found in the Banking Regulations 2008, Sections 20 (13).

[12] Such requirement(s) can be found in the Banking Act Section 31 (1); Banking Regulations 2008, Section 15 (1-4); Microfinance Act 2006, Section 34 (2-3); Sacco Regulations 2010, Section 66 (10).