Introduction
The Central Bank of Kenya (Amendment) Bill, 2020 was published on
19 June 2020 (the Bill), with the principal
objective of amending the Central Bank of Kenya Act (the
CBK Act) to allow the Central Bank of Kenya (the
CBK) to supervise and regulate digital financial
products and services.
Currently, there is no legal framework governing digital
borrowing platforms in Kenya, which has resulted in digital and
mobile lenders operating freely and digital borrowing platforms
that are not classified as financial institutions under the Banking
Act or the Microfinance Act operate without regulatory
oversight.
This has led to multiple micro-lenders investing in Kenya's
credit market in response to the growth in demand for quick loans.
Claims of excessive interest rates and allegations that many of
these lenders fail to provide full information to borrowers on
pricing terms and consequences of defaults have led to concerns
that the digital lending market needs
