Kenya’s Office of the Data Protection Commissioner (ODPC) has fined digital lender Whitepath KES 250,000 ($2,000) for breaking data privacy laws.
This is Whitepath’s second fine in two years, adding to the growing crackdown on digital lenders misusing customer data.
Whitepath, which operates the Instarcash and Zuricash loan apps, listed Dennis Caleb Owuor as a guarantor without his consent.
In November 2024, Owuor started receiving debt collection calls from Whitepath. The representatives insisted he was responsible for repaying a defaulted loan.
Despite Owuor’s denial and requests for proof, the calls continued. Frustrated, he reported the issue to the ODPC, accusing Whitepath of privacy violations and harassment.
ODPC’s Ruling and Action
The ODPC ruled that Whitepath had no legal right to process Owuor’s data. Under Kenya’s Data Protection Act, a company must get clear consent before listing someone as a guarantor. Whitepath failed to do this.
Whitepath ignored inquiries from the regulator, but Kenya’s data laws allow enforcement even without a response. The ODPC ordered Whitepath to delete Owuor’s data and provide proof of compliance.
Also read: 39 African Countries Have Data Protection Laws, 34 Have Regulators
Whitepath’s History of Violations
This isn’t Whitepath’s first offense. In April 2023, the ODPC fined the lender KES 5 million ($39,000) after nearly 150 complaints.
Borrowers accused Whitepath of accessing contact lists without permission and sending unsolicited messages.
Despite an earlier enforcement notice, Whitepath ignored the regulator’s warnings. The company has not yet responded to the latest fine.
The Way Forward
Whitepath’s repeated violations raise concerns about Kenya’s digital lending industry.
Many lenders have been caught extracting contact details from borrower’s phones, publicly sharing debtor information, and using aggressive collection tactics.
While enforcement is increasing, the effectiveness of current penalties is questionable.
Experts say Kenya needs stronger measures, including higher fines and criminal liability for repeat offenders, to ensure digital lenders respect consumer rights.
Source: Tech Cabal
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