MPs order CBK to pause new credit rules for digital lenders
Parliament's Committee on Delegated Legislation told the Central Bank of Kenya on Thursday to suspend the rollout of its new lending rules. MPs objected to vague powers and fines of up to KSh 2 million, putting new protections for borrowers on hold.
The National Assembly's Committee on Delegated Legislation has told the Central Bank of Kenya (CBK) to stop rolling out its new credit rules for non-bank lenders. The directive followed a committee meeting on Thursday, November 12. MPs want CBK officials to work with parliamentary legal counsel to review and redraft the disputed clauses before the rules take effect. Pulse Live Kenya reported that the rules were published as Legal Notice No.191 on September 29, 2026. They replace the Digital Credit Providers Regulations of 2022. The new framework reaches beyond mobile loan apps. It also covers buy-now-pay-later, asset financing, stock-now-pay-later, pay-as-you-go deals, credit guarantees and some peer-to-peer lending. Banks, licensed microfinance institutions and regulated SACCOs generally fall outside it. Under the rules, lenders with initial capital of KSh 20 million or more would need a CBK licence. Smaller ones would have to register. According to Pulse, existing providers have until March 29, 2027 to apply. They can keep operating while CBK reviews their applications. For borrowers, the rules promised several changes. Kenyans.co.ke and The Eastleigh Voice reported that lenders would be banned from threatening borrowers or using abusive language. They could not access borrowers' phone contacts to shame them over unpaid loans. Nor could they recover charges left out of the loan agreement. Repayments would go to principal first, then fees, then interest.…
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