meta_id 3256355

In May 2026, the Central Bank of Kenya (CBK) published a Regulatory Impact Statement on the Central Bank of Kenya (Non-Deposit Taking Credit Providers) Regulations, 2026. The regulations establish a comprehensive framework for licensing, registration, and operation of non-deposit taking credit providers (NDTCPs), replacing the previous Central Bank of Kenya (Digital Credit Providers) Regulations, 2022. The regulations derive authority from Sections 57(1), (3) and (4) of the Central Bank of Kenya Act and the Statutory Instruments Act. The CBK Act was amended by the Business Laws (Amendment) Act, 2024, which expanded the scope of the regulatory framework by replacing the term "digital" with "non-deposit taking" to clarify coverage of all credit providers not regulated under other laws. The new regulations address ongoing challenges including high loan costs, unethical debt collection practices, and misuse of personal information. The regulations comprise eleven parts covering licensing procedures, registration processes, operational requirements, consumer protection safeguards, anti-money laundering and counter-terrorism financing obligations, reporting requirements, a Code of Conduct, enforcement mechanisms, and review procedures. Key provisions include mandatory fit and proper certification, corporate governance standards, risk management requirements, credit information exchange, loan appraisal and collection procedures, customer protection principles, loan agreement content specifications, pricing parameters, and customer complaints mechanisms. The CBK determined that no new financial costs will be imposed on compliant institutions. The regulations will enhance compliance among CBK-licensed institutions and strengthen the integrity of the financial sector. The Central Bank of Kenya (Digital Credit Providers) Regulations, 2022, will be revoked upon publication of the new regulations.