JUST IN: New Law Bans Harassment of Borrowers by Microfinance Lenders 

  The Business Laws (Amendment) Bill, 2024, which amended the Microfinance Act, officially took effect on January 1, 2025, bringing significant changes to the microfinance sector. This new legislation aims to curb abusive debt recovery practices by prohibiting microfinance companies from harassing borrowers. Sponsored by Majority Leader Kimani Ichung’wah, the Bill was introduced following widespread complaints about harsh debt collection methods used by some digital lenders. Borrowers who missed payments by just one day reported receiving threatening messages, and some lenders even contacted their friends and relatives to exert additional pressure. Under the new law, non-deposit-taking microfinance lenders are explicitly barred
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