On the 23rd of December 2021, the Central Bank of Kenya
(Amendment) Act (CBK Amendment Act) came into
force. It amends the Central Bank of Kenya Act (CBK
Act) by granting the Central Bank of Kenya
(CBK) regulatory jurisdiction over digital credit
providers. The CBK Amendment Act also seeks to ensure that there is
a fair and non-discriminatory marketplace for access to credit.
Kenyans are increasingly relying on digital credit providers for
fast and easy access to credit. Various digital credit providers
have made credit easily and quickly accessible making them a very
popular alternative to traditional credit providers. However, the
growing popularity of these digital credit providers has come with
its own set of challenges. Prior to the enactment of the CBK
Amendment Act, there was no legal framework governing digital
credit providers. This left the public unprotected and vulnerable.
The lack of regulation led to unforeseen consequences such as
misuse of private
