Nairobi, June 2 -- Kenya's digital lending industry is learning, sometimes painfully, that failures in data protection compliance now come with a significant price tag. As regulators intensify enforcement, unlawful handling of personal data is proving to be one of the most expensive risks facing mobile-based lenders.

The sector, which has transformed access to credit through smartphone apps and digital platforms, relies heavily on personal data. Identity details, contact information, and behavioural data sit at the core of digital credit scoring and debt recovery.

Regulators are increasingly clear that the convenience of digital lending does not reduce the obligation to process that data lawfully, accurately and transparently.

This mes...