Nairobi — An MP wants shylocks that are charging borrowers exorbitant interest rates to be regulated amid outcry from loanees.

Kericho Women Representative Beatrice Kemei has filed a motion through the National Assembly's Departmental Committee on Finance and National Planning to regulate predatory lenders.

Kemei argues that these moneylenders do not adhere to the Consumer Protection Act of 2012, which seeks to protect consumers and prevent unfair trade practices.

"...unscrupulous business people have exploited the loopholes to the detriment of the general public; concerned that these lenders operate outside of the formal financial sector and as such, engage in predatory practices such as high interest rates, hidden fees, unclear terms and conditions and aggressive loan recovery methods," the lawmaker said .

"...further concerned that the absence of clear and enforceable regulations is untenable and requires immediate remedy; recognizing that the effects of these unregulated operations extend beyond financial implications but are also social and emotional with reports of depression, family breakups and even instances of suicide by borrowers due to excessive penalties and harsh recovery methods," she added.

Appetite for loans has been rising in Kenya over the last few years, attracting a deluge of players willing to offer loans at exorbitant returns.

High interest rates have seen several borrowers default, leading to financial and property losses among Kenyans.

"Now therefore, this House resolves that the government, through the National Treasury and Economic Planning develops a framework to regulate unlicensed money lenders to promote a fair and sustainable financial system," she said.