Kenya’s Credit Sector Poised for Sweeping Oversight Under New CBK Draft Rules
The Central Bank of Kenya (CBK) is taking another significant step to redefine the regulatory landscape of the nation’s rapidly evolving credit market. Just three years after the introduction of initial digital lending regulations, the CBK has unveiled the Draft Non-Deposit-Taking Credit Providers (NDTCPs) Regulations, 2025. This pivotal move, open for public feedback until September 5th, signals a broader and more comprehensive approach to overseeing the diverse array of credit providers in Kenya.
Expanding the Regulatory Net: A Broader Mandate for the CBK
This latest draft marks a substantial expansion of the regulatory framework previously established. While the 2022 Digital Credit Providers rules exclusively targeted lenders operating through digital platforms, the newly proposed regulations cast a much wider net. The Draft NDTCPs Regulations, 2025, are designed to encompass all non-deposit-taking lenders, irrespective of their operational model—whether they provide credit online, offline, or through a blended approach. This crucial shift in oversight authority stems directly from amendments made in the Business Laws (Amendment) Act, 2024, which explicitly empowered the Central Bank of Kenya to supervise this broader category of Non-Deposit-Taking Credit Providers. The proposed rules are anticipated to introduce more stringent governance and operational standards, aiming to enhance stability and consumer protection within the sector.
The introduction of these draft regulations underscores the CBK’s ongoing commitment to fostering a more secure and transparent financial ecosystem. By bringing all non-deposit-taking lenders under its supervisory purview, the Central Bank aims to mitigate risks, protect consumers from predatory practices, and ensure responsible lending across all credit channels. This progressive oversight framework is vital for maintaining financial stability and supporting the sustainable growth of Kenya’s dynamic credit market, reflecting a proactive approach to regulation in Africa’s vibrant tech and financial landscape.
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