Despite the ongoing discussion and debate about which aspects of consumer protection can be best addressed by industry-led actions, versus requiring regulations, the upsurge in the number of cases of fraud, loss of customer funds, lack of transparency regarding applicable fees and costs as well as indebtedness and abuse by unscrupulous digital lenders continues to underscore the need for effective financial consumer protection for DFS.

It is therefore safe to state that while Kenya has succeeded in harnessing the potential of digital technologies to significantly enhance financial inclusion and spur economic growth, the need for effective financial consumer protection in the digital space is now more important than ever.

This is because good consumer protection practices protect the interests of consumers, creating trust in using digital financial services, while preserving the commercial incentive to provide these services at scale.

Moreover, robust consumer protection in digital financial services is necessary to ensure that financial markets are deep and serve the broad market, providing access to financial services for low-income households, while ensuring long-term stability in the sector.

To help address these consumer protection challenges related to the use of DFS, the International Telecommunications Union Focus Group on Digital Financial Services developed five consumer protection themes for digital financial services.