DIGITAL LENDERS FACE KSH5 MILLION FINE UNDER NEW CBK RULES

The Central Bank of Kenya (CBK) has unveiled new regulations that will see unlicensed digital lenders fined up to Ksh5 million or face a jail term of up to three years.
The rules—formulated under recent amendments to the CBK Act—target companies and individuals offering digital credit or loan services without proper licensing.
In addition, licensed firms that flout regulatory requirements could be penalised up to Ksh2 million or three times the amount of any gain made, whichever is higher, while continued non-compliance will attract a Ksh10,000 daily fine.
The draft also prescribes similar penalties for violations of anti-money laundering and counter-terrorism financing laws, with legal entities risking fines of up to Ksh5 million.
CBK has given existing digital lenders a five-year transition period to obtain licences and fully comply with the new rules.