Ken, Daniel & Henry Advocates

Consumer Protection Alert: Mogo Fined for Misleading Credit Terms Mogo, a prominent car logbook loan provider in Kenya, has been fined KSh 11 million by the Competition Authority of Kenya (CAK) for engaging in deceptive advertising regarding credit terms. The company claimed to offer loans at a 1.25% monthly interest rate, but investigations revealed that the actual cost of borrowing was substantially higher once hidden fees were included. This discrepancy not only caught borrowers by surprise but also breached consumer protection regulations to ensure transparency and fairness in lending practices. The CAK found that Mogo's marketing tactics misrepresented the true cost of their loans, leading consumers to believe they were accessing affordable credit when they faced much higher financial obligations. As part of the enforcement action, Mogo has been ordered to pay the hefty fine and amend its advertising to reflect the true cost of its loans accurately. Such corrective measures protect consumers from falling victim to misleading financial products. This development highlights a broader issue within the lending industry: the critical need for transparency and full disclosure in financial advertising. Consumers often rely on advertised rates to make decisions that impact their financial well-being, and misleading claims can result in undue financial hardship. Regulators like CAK play a crucial role in ensuring that financial service providers comply with the law and prioritize consumer interests over profits. Financial institutions are urged to take this case as a reminder of the importance of fair dealing and ethical practices. Transparent advertising not only fosters consumer trust but is also fundamental to a stable and well-functioning financial market. Companies must ensure that all fees, charges, and effective interest rates are communicated to potential borrowers, empowering them to make informed decisions. Consumers should thoroughly review all loan terms and conditions, ensuring advertised interest rates and all additional fees are clearly stated in the final contract. They should seek clarification or file a complaint with regulators if misleading practices are suspected. For lenders, compliance with consumer protection laws is mandatory—misleading advertising can lead to serious legal and financial consequences. Transparent and truthful advertising, along with accurate contracts, is essential. Financial institutions can build trust with consumers and avoid legal issues by prioritising ethical practices and full disclosure.

Consumer Protection Alert: Mogo Fined for Misleading Credit Terms Mogo, a prominent car logbook loan provider in Kenya, has been fined KSh 11 million by the Competition Authority of Kenya (CAK) for engaging in deceptive advertising regarding credit terms. The company claimed to offer loans at a 1.25% monthly interest rate, but investigations revealed that the actual cost of borrowing was substantially higher once hidden fees were included. This discrepancy not only caught borrowers by surprise but also breached consumer protection regulations to ensure transparency and fairness in lending practices. The CAK found that Mogo's marketing tactics misrepresented the true cost of their loans, leading consumers to believe they were accessing affordable credit when they faced much higher financial obligations. As part of the enforcement action, Mogo has been ordered to pay the hefty fine and amend its advertising to reflect the true cost of its loans accurately. Such corrective measures protect consumers from falling victim to misleading financial products. This development highlights a broader issue within the lending industry: the critical need for transparency and full disclosure in financial advertising. Consumers often rely on advertised rates to make decisions that impact their financial well-being, and misleading claims can result in undue financial hardship. Regulators like CAK play a crucial role in ensuring that financial service providers comply with the law and prioritize consumer interests over profits. Financial institutions are urged to take this case as a reminder of the importance of fair dealing and ethical practices. Transparent advertising not only fosters consumer trust but is also fundamental to a stable and well-functioning financial market. Companies must ensure that all fees, charges, and effective interest rates are communicated to potential borrowers, empowering them to make informed decisions. Consumers should thoroughly review all loan terms and conditions, ensuring advertised interest rates and all additional fees are clearly stated in the final contract. They should seek clarification or file a complaint with regulators if misleading practices are suspected. For lenders, compliance with consumer protection laws is mandatory—misleading advertising can lead to serious legal and financial consequences. Transparent and truthful advertising, along with accurate contracts, is essential. Financial institutions can build trust with consumers and avoid legal issues by prioritising ethical practices and full disclosure.

Consumer Protection Alert: Mogo Fined for Misleading Credit Terms Mogo, a prominent car logbook loan provider in Kenya, has been fined KSh 11 million by the Competition Authority of Kenya (CAK) for engaging in deceptive advertising regarding credit terms. The company claimed to offer loans at a 1.25% monthly interest rate, but investigations revealed that the actual cost of borrowing was substantially higher once hidden fees were included. This discrepancy not only caught borrowers by surprise but also breached consumer protection regulations to ensure transparency and fairness in lending practices. The CAK found that Mogo's marketing tactics misrepresented the true cost of their loans, leading consumers to believe they were accessing affordable credit when they faced much higher financial obligations. As part of the enforcement action, Mogo has been ordered to pay the hefty fine and amend its advertising to reflect the true cost of its loans accurately. Such corrective measures protect consumers from falling victim to misleading financial products. This development highlights a broader issue within the lending industry: the critical need for transparency and full disclosure in financial advertising. Consumers often rely on advertised rates to make decisions that impact their financial well-being, and misleading claims can result in undue financial hardship. Regulators like CAK play a crucial role in ensuring that financial service providers comply with the law and prioritize consumer interests over profits. Financial institutions are urged to take this case as a reminder of the importance of fair dealing and ethical practices. Transparent advertising not only fosters consumer trust but is also fundamental to a stable and well-functioning financial market. Companies must ensure that all fees, charges, and effective interest rates are communicated to potential borrowers, empowering them to make informed decisions. Consumers should thoroughly review all loan terms and conditions, ensuring advertised interest rates and all additional fees are clearly stated in the final contract. They should seek clarification or file a complaint with regulators if misleading practices are suspected. For lenders, compliance with consumer protection laws is mandatory—misleading advertising can lead to serious legal and financial consequences. Transparent and truthful advertising, along with accurate contracts, is essential. Financial institutions can build trust with consumers and avoid legal issues by prioritising ethical practices and full disclosure.

#KDHAlert | In today’s alerts we explore the impact of the Employment and Labour Relation Court’s decision in MNM v G4S Kenya Limited [2024] delivered on 20 September, 2024, where the Court held that employers cannot regulate consensual romantic relationship between employees unless there is evidence of professional misconduct or harm to the workplace. Click here https://lnkd.in/dMksrM9x to read the full decision. #employment#Kenya#KDH#Kenya

Exciting Developments in Corporate Sustainability: The European Union's Directive on Corporate Sustainability Due Diligence On 23 February 2022, the European Commission set a significant milestone by adopting a proposal for a corporate sustainability due diligence Directive. This initiative marks a pivotal step towards embedding sustainability at the core of corporate operations, aiming to foster responsible and ethical behaviour in companies' operations globally. The directive mandates that companies identify and mitigate adverse human rights and environmental impacts, ensuring their activities align with sustainable development and corporate accountability goals. The adoption process concluded on 24 May 2024 when the Council of the European Union approved the political agreement. This approval signifies the EU's commitment to reinforcing its regulatory framework to address contemporary challenges in human rights and environmental sustainability. By holding companies accountable for their global value chains, the EU aims to create a more equitable and sustainable global economy. This directive reflects a growing recognition of the importance of corporate responsibility and the need for robust mechanisms to ensure compliance and enforcement. As we move forward, it is imperative for companies within the scope of this directive to diligently assess and address the potential adverse impacts of their operations. This directive not only reinforces the importance of ethical business practices but also underscores the EU's leadership in promoting global sustainability standards. Businesses must now integrate these principles into their core strategies, ensuring they contribute positively to society and the environment. This is a critical moment for corporate sustainability, and the adoption of this directive sets a new benchmark for responsible corporate conduct across the globe. https://lnkd.in/eiUgsuqW

Exciting Developments in Corporate Sustainability: The European Union's Directive on Corporate Sustainability Due Diligence On 23 February 2022, the European Commission set a significant milestone by adopting a proposal for a corporate sustainability due diligence Directive. This initiative marks a pivotal step towards embedding sustainability at the core of corporate operations, aiming to foster responsible and ethical behaviour in companies' operations globally. The directive mandates that companies identify and mitigate adverse human rights and environmental impacts, ensuring their activities align with sustainable development and corporate accountability goals. The adoption process concluded on 24 May 2024 when the Council of the European Union approved the political agreement. This approval signifies the EU's commitment to reinforcing its regulatory framework to address contemporary challenges in human rights and environmental sustainability. By holding companies accountable for their global value chains, the EU aims to create a more equitable and sustainable global economy. This directive reflects a growing recognition of the importance of corporate responsibility and the need for robust mechanisms to ensure compliance and enforcement. As we move forward, it is imperative for companies within the scope of this directive to diligently assess and address the potential adverse impacts of their operations. This directive not only reinforces the importance of ethical business practices but also underscores the EU's leadership in promoting global sustainability standards. Businesses must now integrate these principles into their core strategies, ensuring they contribute positively to society and the environment. This is a critical moment for corporate sustainability, and the adoption of this directive sets a new benchmark for responsible corporate conduct across the globe. https://lnkd.in/eiUgsuqW

Exciting Developments in Corporate Sustainability: The European Union's Directive on Corporate Sustainability Due Diligence On 23 February 2022, the European Commission set a significant milestone by adopting a proposal for a corporate sustainability due diligence Directive. This initiative marks a pivotal step towards embedding sustainability at the core of corporate operations, aiming to foster responsible and ethical behaviour in companies' operations globally. The directive mandates that companies identify and mitigate adverse human rights and environmental impacts, ensuring their activities align with sustainable development and corporate accountability goals. The adoption process concluded on 24 May 2024 when the Council of the European Union approved the political agreement. This approval signifies the EU's commitment to reinforcing its regulatory framework to address contemporary challenges in human rights and environmental sustainability. By holding companies accountable for their global value chains, the EU aims to create a more equitable and sustainable global economy. This directive reflects a growing recognition of the importance of corporate responsibility and the need for robust mechanisms to ensure compliance and enforcement. As we move forward, it is imperative for companies within the scope of this directive to diligently assess and address the potential adverse impacts of their operations. This directive not only reinforces the importance of ethical business practices but also underscores the EU's leadership in promoting global sustainability standards. Businesses must now integrate these principles into their core strategies, ensuring they contribute positively to society and the environment. This is a critical moment for corporate sustainability, and the adoption of this directive sets a new benchmark for responsible corporate conduct across the globe. https://lnkd.in/eiUgsuqW

This past week, the European Court of Human Rights made a ruling regarding the Swiss government's inadequate action on climate change. The ruling stated that Switzeland's failure to address climate change violates the rights of citizens, marking the first time the court has recognized climate change as a human rights issue. This ruling establishes a precedent for future climate-related lawsuits, potentially pressuring governments to take more decisive action to reduce greenhouse gas emissions. The court determined that individuals have the right to be protected from the adverse effects of climate change under Article 8 of the convention. Switzerland was found to violate this right due to its failure to adequately address the climate crisis, including not quantifying emissions or meeting reduction targets. Besides, the court called for Switzerland to align its climate policies with the Paris Agreement's target of limiting global warming to 1.5 degrees Celsius. This greatly aligns with the broader goal of preventing irreversible adverse effects on human rights due to climate change. While the ruling directly applies to Switzerland, it has broader implications for other European countries under the European Convention on Human Rights. It could influence legal strategies in other jurisdictions and increase pressure on governments, including the United States, to strengthen their climate policies. Overall, the ruling signifies a monumental step in recognizing the legal obligations of governments to address climate change and may catalyze further legal action worldwide to combat the climate crisis. https://lnkd.in/dFvebTEE

This past week, the European Court of Human Rights made a ruling regarding the Swiss government's inadequate action on climate change. The ruling stated that Switzeland's failure to address climate change violates the rights of citizens, marking the first time the court has recognized climate change as a human rights issue. This ruling establishes a precedent for future climate-related lawsuits, potentially pressuring governments to take more decisive action to reduce greenhouse gas emissions. The court determined that individuals have the right to be protected from the adverse effects of climate change under Article 8 of the convention. Switzerland was found to violate this right due to its failure to adequately address the climate crisis, including not quantifying emissions or meeting reduction targets. Besides, the court called for Switzerland to align its climate policies with the Paris Agreement's target of limiting global warming to 1.5 degrees Celsius. This greatly aligns with the broader goal of preventing irreversible adverse effects on human rights due to climate change. While the ruling directly applies to Switzerland, it has broader implications for other European countries under the European Convention on Human Rights. It could influence legal strategies in other jurisdictions and increase pressure on governments, including the United States, to strengthen their climate policies. Overall, the ruling signifies a monumental step in recognizing the legal obligations of governments to address climate change and may catalyze further legal action worldwide to combat the climate crisis. https://lnkd.in/dFvebTEE

Eid Mubarak to all our clients.