CBK seeks public feedback on draft rules for all non-deposit lenders to boost transparency, fairness, and consumer protection.
Kenya’s Central Bank Moves to Tighten Loan App Rules
The Central Bank of Kenya (CBK) has opened public consultations on the CBK (Non-Deposit Taking Credit Providers) Regulations, 2025. The aim is to bring loan apps and other non-bank lenders under tighter control.
The public can submit feedback until September 5, 2025, according to a CBK announcement posted on X (formerly Twitter) on August 7, 2025.
Why the Change?
The new rules replace the term Digital Credit Providers (DCPs) with the broader category of Non-Deposit Taking Credit Providers (NDTCPs). This shift comes from the Business Laws (Amendment) Act, 2024 and is meant to clear up legal grey areas while matching global financial regulation standards.
Kenya first regulated digital lenders in 2022 to curb high interest rates, aggressive debt collection, and misuse of borrower data. So far, 126 firms have been licensed — but CBK says gaps remain, especially with lenders operating outside the digital space.
What’s in the Draft Regulations?
The proposed changes include:
- Wider coverage — all non-deposit lenders, whether app-based or physical.
- Caps on loan recovery — defaults can only trigger repayment of the principal plus reasonable costs (Tuko News).
- Ban on harassment — no threats, public shaming, or contacting unrelated third parties.
- Data protection — strict ICT governance and borrower privacy rules.
- Tiered licensing — lenders with a loan book or capital base over KES 20 million (~USD 155,000) must get a full CBK licence.
Part of Bigger Banking Reforms
This push comes as CBK reshapes lending in Kenya. Recently, it ordered banks to drop the Risk-Based Credit Pricing Model, saying it led to hidden fees and inconsistent borrower treatment.
These moves support Kenya’s wider goal of building a secure, transparent payments ecosystem that drives economic growth and improves access to fair credit.
How to Send Your Comments
- Email: fin@centralbank.go.ke
- Mail: The Director, Bank Supervision Department, Central Bank of Kenya, P.O. Box 60000–00200, Nairobi, Kenya