Kenyan loan app Whitepath was fined KES 250,000 for breaching data protection laws by adding an individual as a guarantor without consent, leading to debt collection calls.
Case Details
In November 2024, Dennis Caleb Owuor received a debt collection call from Whitepath about a loan where he was named a guarantor. Unaware of this role, Owuor filed a complaint with the ODPC regarding privacy rights violations.
Regulator's Response and Whitepath’s Penalty
Whitepath did not respond to ODPC’s requests, leading to a KES 250,000 fine. Moreover, the company was ordered to erase Owuor’s data and demonstrate compliance. Previously, Whitepath faced a 5 million KES fine for similar data breaches.
Issues with Digital Lenders and Solutions
Digital lenders often employ aggressive debt recovery tactics. Regulators are intensifying oversight, though experts call for stricter fines and enhanced supervision of these apps' operations.
The Whitepath case underscores the need for stricter regulation of digital lenders to ensure user data protection and rights.
