Court Upholds Ksh.900k Fine Against Digital Lender Company For Persistent Calls on Follow-ups

The High Court of Nairobi, Milimani division, has upheld a Sh900,000 fine imposed by the Office of the Data Protection Commissioner (ODPC) against a digital lending company called Credit Watch Investment Limited for
privacy violations, rejecting the digital lender’s appeal against the December 2023 ruling.

This case primarily majored on the company’s harassment of three individuals namely; Peter Mbugua, Timothy Ngome, and Aggrey Timothy. This trio were listed as guarantors or emergency contacts by loan defaulters on the company’s Cloud-loan platform, with each complainant awarded Sh300,000 in damages for distress.

YOU CAN ALSO READ

1. NCBA Projects 4.8% GDP Growth in 2024 for Kenya, Despite Global Headwinds
2. Davido Hints On Taking Legal Recourse Against K24 Over April Fool’s Day Prank
3. NCBA To Compensate Employee Ksh. 250k For Unlawful Disclosure of Personal Data

Justice Joe Omido, who was hearing this case, determined that the lender’s persistent calls exceeded legitimate follow-up efforts and violated Section 26(a) of the Data Protection Act,
as the company failed to inform the contacted individuals that their information would be used to pursue loan defaulters.

The ruling was supported by evidence including screenshot messages sent to the
complainants’ mobile phones, establishing that their personal information had been misused in the debt collection process without proper consent or notification.