In the latest case against predatory digital lenders in Kenya, a borrower who sought urgent funds for a medical emergency now regrets turning to Wooden Loan, operating under Zamaradi Capital & Credit Group, after being lured in by a quick loan approval process, only to find himself trapped in a cycle of harassment and exorbitant interest rates, with the lender bombarding him with relentless calls and messages as soon as he missed the repayment deadline.
The borrower, desperate to assist his girlfriend with a medical scan after her miscarriage, was shocked when the loan amount he received was much less than what he had requested, and the repayment, now inflated by high interest, seemed impossible to meet. What followed was a constant stream of messages, over 300 in total, and phone calls from over 15 different numbers, demanding payment in the harshest terms.
The lender even resorted to insulting the borrower and threatening to expose him to his contacts, leaving him fearing the worst as he struggled to handle the overwhelming pressure.
This case once again exposes the failure of the Central Bank of Kenya (CBK) and the Capital Markets Authority (CMA) to regulate predatory digital lenders effectively, leaving consumers vulnerable to such exploitative practices.
They must urgently address these rampant abuses, as current oversight remains inadequate.
Without stronger enforcement, borrowers will continue to suffer under the pressure of unfair loan terms and harassment.
According to the sources who spoke to blogger Cyprian Nyakundi, they said, “Please help expose Wooden Loan under Zamaradi Capital & Credit Group. I borrowed Ksh 4,000 from them last Thursday for my girlfriend’s medical scan after a miscarriage.
“In a rush, I didn’t realise the repayment was due in seven days. Yesterday was the deadline, but I couldn’t pay. Mind you, I requested Ksh 4,200, which was their limit; to my surprise, I received Ksh 3,084.
“Now, the demand is that I pay back Ksh 4,724; that interest rate is unrealistic. Since 7 AM yesterday, they’ve called nonstop and sent over 300 messages from 15+ numbers. Now, they’re insulting me and threatening to expose me to my contacts.”
