CBK PROPOSES NEW RULES FOR DIGITAL LENDERS, SEEKS PUBLIC FEEDBACK

The Central Bank of Kenya (CBK) has proposed new regulations aimed at tightening oversight of digital lenders and enhancing consumer protection in the fast-growing digital credit market. The draft Non‑Deposit Taking Credit Providers Regulations, 2025, were released today August 7, 2025, and are open for public comment until September 5, 2025.
In a notice published by CBK, the regulator said the new framework seeks to strengthen and expand the 2022 Digital Credit Providers Regulations. The reforms are in line with amendments introduced by the Business Laws (Amendment) Act, 2024, which reclassified digital lenders as Non‑Deposit Taking Credit Providers (NDTCs).
“This shift is intended to broaden the regulatory scope and clarify the legal status of digital lenders, some of whom have operated in grey areas of the law,” CBK said in the statement.
Since the licensing regime began in March 2022, a total of 126 digital lenders have been approved. However, the CBK noted that the current legal framework has gaps that hinder full regulatory effectiveness. The new rules aim to address those gaps while holding credit providers to higher standards of accountability and transparency.
The CBK is inviting views from stakeholders—including digital lenders, civil society groups, and the general public—before finalizing the regulations. Comments can be submitted via email or posted to the CBK headquarters, and the full draft is available on the regulator’s website.
The proposed rules come amid growing concerns over predatory lending practices, misuse of borrower data, and unlicensed operators in Kenya’s booming digital finance sector.