The Central Bank of Kenya has published draft Central Bank of Kenya (Non-Deposit Taking Credit Providers) Regulations, 2025 and invited public comments, with the aim of operationalising amendments to the Central Bank of Kenya Act and updating the supervisory framework previously applied to digital credit providers. The draft follows amendments introduced by the Business Laws (Amendment) Act, 2024 that widened the scope of operations for non-deposit taking credit providers and replaced the term “digital” with “non deposit taking” to address confusion about the regime’s coverage. CBK also referenced the existing Digital Credit Providers Regulations, 2022, which were introduced after the 2021 amendments to address high loan costs, unethical debt collection and abuse of personal information, and noted that despite licensing 126 providers, challenges have persisted that affect the framework’s effectiveness. Comments are due by 5 September 2025.
Central Bank of Kenya 2025-08-07
Central Bank of Kenya launches consultation on draft Non-Deposit Taking Credit Providers Regulations
The Central Bank of Kenya has released draft regulations for Non-Deposit Taking Credit Providers to update the supervisory framework and align with recent amendments to the Central Bank of Kenya Act. These regulations aim to address challenges in the sector, including high loan costs and unethical practices, despite licensing 126 providers under the 2022 Digital Credit Providers Regulations. Public comments have been invited to refine these regulations.