KENYA: Regulatory Crackdowns against Loan Apps

Kenya pioneered digital lending regulation in Africa when the Central Bank of Kenya (CBK) introduced its Digital Credit Provider (DCP) licensing framework in March 2022. The framework was a direct response to widespread public complaints about predatory practices, including high interest rates, unethical debt collection methods, and misuse of borrowers' personal data .

Key Actions Taken

Licensing Program

As of April 2026, the CBK has licensed 227 Digital Credit Providers, with 32 new approvals announced on April 14, 2026 alone. The regulator has received over 800 applications since the framework was introduced .

Rigorous Vetting Process

The CBK assesses applicants based on:

• Business models
• Governance structures
• Compliance with consumer protection requirements
• Fitness and propriety of proposed shareholders, directors, and management 

Loan Portfolio Growth

Licensed DCPs have issued approximately 7.5 million loans valued at Sh133.5 billion (approximately $1.03 billion USD) as of February 2026 .

Public Reporting Mechanism

The CBK encourages members of the public to report unregulated digital lenders through its official communication channels .

The In Duplum Rule Expansion

In a landmark ruling on April 24, 2026, Kenya's High Court held that the in duplum rule – which prevents interest from exceeding the principal amount – applies to ALL lenders, including microfinance banks and digital lenders, not just traditional banks. This closed a major loophole that predatory lenders had exploited.

Ongoing Challenges

Many applications remain incomplete, with some firms yet to submit required documentation. The CBK continues to urge applicants to expedite their submissions .