Digital lenders in Kenya: what the rules say about you

Mobile loan apps grew quickly in Kenya, along with complaints about hidden charges and abusive debt collection. Digital credit providers are now regulated by the Central Bank of Kenya (CBK).

Licensing

Non-deposit-taking digital credit providers must be licensed by CBK. Check the CBK website for the list of licensed providers before borrowing.

Key borrower protections

• Transparent pricing: the full cost of credit must be disclosed before you accept.
• No debt shaming: lenders may not contact your phone contacts or use threatening or abusive language.
• Data protection: lenders must handle personal data lawfully under the Data Protection Act, 2019.
• Fair collection: collection must be conducted respectfully and within reasonable hours.

If you have a complaint

1. Complain to the lender and keep a record.
2. Escalate to the CBK.
3. For misuse of personal data, complain to the Office of the Data Protection Commissioner.

Borrow only what you can repay, and read the terms before you click “accept”.

This article is general information, not legal advice on your situation.

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