According to Aimable Nkuranga, the Executive Director of AMIR, the move aimed part of the association's efforts to promote responsible financing while adhering to the principles of consumer principles include appropriate product design and delivery, prevention of over-indebtedness, transparency, responsible pricing, fair and respectful treatment of clients, privacy of client data, and mechanisms for complaint resolution.
All MFIs displayed, in their workplaces, Dos and Don'ts of preventing Covid-19 - which demonstrates transparency and safety for clients - some of the principles of consumer protection.
Due to Covid-19 induced slow economic activities, Nkuranga said some MFI clients stopped saving while others withdrew their savings to cater for their domestic needs.
Now MFIs and SACCOs can tap from the Fund and lend to their clients and
Eligible businesses will have to demonstrate the negative impact of Covid-19 on their operations, that they were commercially viable prior to the pandemic, and that they can return to viability, preserve jobs and contribute to the recovery of the economy.
Meanwhile, AMIR has warned clients of MFIs to avoid over-indebtedness in order to avoid defaults, which can drive up nonperforming loans and lead to losses.
