Shylocking, also known as loan sharking, is the practice of lending money to individuals at extremely high interest rates, often with the use of threats or violence to ensure repayment. This predatory lending practice preys on those who are in desperate need of cash and often leads to a cycle of debt and financial ruin. In Kenya, the legality of shylocking has been a topic of much debate and controversy.
As today, shylocking illegal Kenya. The country has put in place strict laws and regulations to curb this exploitative practice. The Money Lenders Act, Cap 273 of the Kenyan laws, strictly prohibits shylocking. Under this act, any person or entity engaging in money lending activities without a valid license issued by the Cabinet Secretary is deemed to be shylocking. The Act also sets out the maximum interest rates that money lenders can charge, in order to protect borrowers from exorbitant fees.
