The Central Bank of Kenya (CBK) has invited public comments on its newly drafted Non-Deposit Taking Credit Providers (NDTCPs) Regulations, 2025, aimed at strengthening oversight of credit providers outside the traditional banking system. This move marks the latest effort by the regulator to bring order and clarity to the fast-growing digital lending sector, which has long faced criticism for high interest rates, unethical collection practices, and misuse of personal data.
The CBK, in a statement released on 7 August 2025, announced that it had developed the draft regulations in response to amendments made to the CBK Act through the Business Laws (Amendment) Act, 2024. The new draft rules seek to replace the term “digital” with “non-deposit taking” to eliminate confusion among industry stakeholders and align with the broader scope now covered by law.
The central keyword being promoted by the CBK is “Non-Deposit Taking Credit Providers”, a term that reflects the regulator’s intent to create a clearer legal framework that applies to a wider range of lenders, not just those operating digitally.
CBK first moved to regulate the digital lending sector in 2021 following amendments to the CBK Act through the CBK (Amendment) Act, 2021. This introduced the licensing and regulatory framework for Digital Credit Providers (DCPs), which previously operated in a largely unregulated environment.
By 2022, the CBK had issued the Digital Credit Providers Regulations, which led to the licensing of 126 DCPs. While the move was seen as a significant step forward, concerns remained around the framework’s effectiveness. Critics argued that many players continued to exploit legal loopholes, and enforcement mechanisms were inadequate to safeguard consumers.
The updated 2025 draft regulations aim to address these gaps by expanding the scope of regulation to all non-deposit taking credit providers, including those offering credit services physically or through other non-digital platforms.
“The term ‘digital’ has been replaced with ‘non-deposit taking’ to address confusion by industry players and the public on the scope of the framework,” the CBK explained in its statement.
In line with Kenya’s constitutional requirements for public participation, the CBK is inviting written comments from the public before Friday, 5 September 2025. Submissions can be made via email to fin@centralbank.go.ke.
A copy of the draft regulations is available on the CBK’s official website, where stakeholders can download and review the proposed rules. This consultative process is part of CBK’s efforts to ensure that regulatory policies are responsive to both market needs and public interest.
“The draft is designed to provide a robust legal foundation for oversight of credit providers while ensuring protection of consumer rights,” the CBK said.
The need for tighter regulation has been a growing concern in Kenya, where many digital lenders have come under scrutiny for issuing high-cost loans with unclear terms and using aggressive debt collection methods. In some cases, lenders have been accused of publicly shaming defaulters or sharing borrowers’ personal information without consent.
By expanding the regulations to all Non-Deposit Taking Credit Providers, CBK hopes to curb such practices and bring all informal and digital lenders under a unified compliance structure.
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