On March 21, 2022, the Central Bank of Kenya (CBK) published the Central Bank of Kenya (Digital Credit Providers) Regulations, 2022, to regulate digital lending service providers.
The regulations require unregulated digital credit providers to apply for licenses within six months of publication, by September 17, 2022, or cease operations.
According to the CBK, the new regulations aim to address concerns raised by the public regarding the predatory practices of unregulated digital credit providers, including high costs, unethical debt collection practices, and the abuse of personal information.
The regulations also provide for consumer protection, credit information sharing, and outline the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) obligations of digital credit providers.
