The Data Protection Act, 2019 in Kenya sets rules for handling personal information. It aims to protect people’s privacy and give them control over their data.
Key Objectives and Principles
The Data Protection Act’s main goal is to safeguard personal data. It requires companies to collect and use data fairly and legally.
Key principles include:
- Only collecting necessary data
- Keeping data accurate and up-to-date
- Storing data securely
- Using data only for stated purposes
- Deleting data when no longer needed
These rules apply to all personal information, from names to financial details.
Rights of the Data Subject
You have important rights under this law. These include:
- The right to know what data is collected about you
- The right to access your data
- The right to correct mistakes in your data
- The right to delete your data in certain cases
You can also object to how your data is used. For example, you can opt out of marketing emails.
Obligations of Data Controllers and Processors
Companies that handle your data have responsibilities. They must:
- Get your consent before collecting data
- Protect your data from breaches
- Report any data breaches quickly
- Appoint a Data Protection Officer
- Do impact assessments for risky data processing
They also need to follow strict rules when sending data outside Kenya.
Risk Assessment and Management
Keeping your fintech startup safe means looking at risks and making plans to deal with them. This helps protect customer data and follow the law.
Data Protection Impact Assessment
A Data Protection Impact Assessment (DPIA) is a key tool for your startup. It helps you spot privacy risks before they become problems. Here’s what you need to do:
- Look at how you collect and use personal data
- Think about possible risks to people’s privacy
- Come up with ways to lower those risks
Doing a DPIA shows you’re serious about following the law. It also helps build trust with your customers.
Risk Identification and Classification
Finding and sorting risks is a big part of keeping data safe. Here are some steps to take:
- List all the ways you handle personal data
- Think about what could go wrong with each one
- Group risks by how serious they are
Mitigation and Prevention Strategies
Once you know your risks, it’s time to make plans to stop them. Here are some ideas:
- Use strong passwords and change them often
- Train your team on data safety
- Keep your software up to date
- Use encryption for sensitive data
- Have a plan for what to do if something goes wrong
Remember, protecting data is an ongoing job. Keep checking and updating your plans to stay safe.
Data Processing Policies and Procedures
Kenyan fintech startups need clear policies for handling customer data. These cover getting permission, limiting data collection, and proper storage practices.
Consent Mechanisms
You must get clear permission before collecting customer data. Create simple forms that explain what data you’re collecting and why. Use checkboxes or toggle switches for specific consent options.
Make sure your consent forms are easy to understand. Avoid legal jargon. Include an option for customers to withdraw consent at any time.
Consider using pop-up notifications in your app for ongoing consent. This keeps customers informed about data use.
Data Collection Limitations
Only collect the data you really need. Make a list of essential information for your service. Avoid asking for extra details that aren’t necessary.
Be transparent about why you need each piece of data. Explain this clearly to your customers.
Set up systems to automatically delete data you don’t need anymore. This helps protect customer privacy and reduces your storage needs.
Data Usage and Storage Protocols
Create clear rules for how staff can access and use customer data. Limit access to only those who need it for their jobs. Use strong passwords and two-factor authentication.
Encrypt all stored data to keep it safe. Use up-to-date encryption methods. Regularly update your security measures.
Set a schedule for deleting old data. Keep records only as long as legally required. Train your team on proper data handling procedures.
Data Subject Access Rights
The Data Protection Act gives Kenyan citizens control over their personal information. You have several key rights when it comes to how companies handle your data.
Access and Portability
You can ask fintech companies for copies of all the personal data they have about you. This includes things like account details, transaction history, and contact information.
Companies must give you this info in a clear, easy-to-read format. You can also request that your data be sent directly to another company.
If a company takes too long or refuses your request, you can complain to the Office of the Data Protection Commissioner.
Rectification and Erasure Requests
You have the right to fix mistakes in your personal data. If you spot an error, ask the company to correct it right away.
You can also ask fintech firms to delete your data in some cases. This might apply if:
- They no longer need your info
- You take back your consent
- The data was collected unlawfully
Companies should act on these requests quickly, usually within 30 days.
Objections to Data Processing and Decision Making
You can instruct companies to stop using your data for certain purposes, like marketing. They must respect your wishes unless they have a really good reason not to.
You also have the right to question decisions made only by computers about you. This includes things like loan approvals or credit scores.
If a decision affects you significantly, you can ask for a human to review it instead of relying on an algorithm.
Compliance Monitoring and Reporting
Keeping track of your data protection efforts is key. Regular checks and good record-keeping help you stay on top of the rules.
Internal Audits and Reviews
Set up a schedule to check your data practices. Look at how you collect, use, and store customer info every few months.
Make a checklist of all the rules you need to follow. Go through it step by step during your review.
Ask your team about any issues they’ve noticed. They might spot problems you haven’t seen.
Keep notes on what you find and what you fix. This helps show you’re trying to follow the rules if anyone asks.
Breach Notification Procedures
Know what counts as a data breach. It could be a hack, a lost device, or even sending an email to the wrong person.
Make a plan for what to do if there’s a breach. Write down who to tell and what steps to take.
Notify the authorities within 72 hours if there’s a serious breach. Let affected customers know quickly too.
Practice your response plan regularly. This helps everyone know what to do in a real emergency.
Documentation and Record Keeping
Write down your data protection policies. Make sure they’re clear and easy to understand.
Keep logs of who accesses customer data and why. This helps track any unusual activity.
Save copies of customer consent forms. You need to prove they agreed to share their info.
Update your records regularly. Old info can cause problems if there’s ever an investigation.
Use secure digital storage for your records. Make sure only the right people can access them.
Ready to Navigate the Legal Landscape of FinTech in Kenya? Book a consultation with our expert legal team today! Visit kraidoadvocates.com/book-a-consultation or call us directly at +254 799 180 755. Let us help you stay compliant and focused on growth.
