Digital Credit Providers could breathe a sigh of relief, while borrowers face a setback after the National Assembly halted the rollout of proposed Central Bank of Kenya (CBK) regulations that sought to introduce stricter rules for lenders.
The Committee on Delegated Legislation on Thursday, November 12, directed CBK to suspend the rollout of the proposed regulations, citing excessive administrative powers and huge and unlawful penalties, as well as discrepancies in drafting the new regulations.
The move delays the implementation of new requirements that would have tightened oversight of digital lenders while strengthening protections for borrowers.
CBK argued that the Non-Deposit-Taking Credit Providers Regulations, 2025, were intended to bring more lending businesses under CBK supervision, regulate how they issue loans and protect Kenyans from exploitative lending practices.
The regulations target mobile loan applications and digital lenders, Buy-now-pay-later businesses, and Asset financing companies, as well as other non-deposit-taking credit providers.
Under the proposed regulations, businesses with initial capital exceeding Ksh20 million would apply for a CBK licence, while those with below Ksh20 million as initial capital would apply for registration, meaning any lender could not operate freely without getting the nod of the central bank.
The regulations also proposed restrictions on how lenders could collect debts, prohibiting businesses from threatening or using violence against borrowers, insulting borrowers or using abusive language, as…
