The Central Bank of Kenya has announced the operationalization of regulations that govern mobile money lenders. This was via Legal Notice No. 46 of March 18, 2022, of the Central Bank of Kenya (Digital Credit Providers) Regulations 2022.
The regulations provide for the licensing and oversight of previously unregulated digital credit providers. They seek to address concerns that were raised by the public in regards to predatory lending more so the high interest rates, unethical debt collection practises and the abuse of personal information.
The CBK regulations provide for the licensing, governance and lending of the mobile lenders. They also provide for consumer protection, credit information sharing and outline the Anti Money Laundering and Combating Financing of Terrorism obligations of the lenders.
Following the passing of the regulations, all mobile lenders that have not been regulated are required to apply to the CBK by September 17th 2022 or cease operations.