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Originally published by Capital News
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February 25, 2026
3h ago

CS Mbadi Unveils Tough Rules to Tame Predatory Digital Lenders

CS Mbadi Unveils Tough Rules to Tame Predatory Digital Lenders

The framework spells out strict eligibility criteria, governance standards, operational requirements and consumer protection obligations designed to clean up a sector that has in recent years faced mounting complaints over exorbitant interest rates, data misuse and unethical debt..

✨ Key Highlights

Kenya's National Treasury is implementing strict new regulations to curb predatory practices by digital lenders and protect borrowers. Cabinet Secretary John Mbadi announced the sweeping measures before the Senate.

  • All Non-Deposit Taking Credit Providers (NDTCPs) must now be licensed by the Central Bank of Kenya (CBK) under a new framework.
  • The reforms include strengthened licensing, oversight, and uniform data privacy standards enforced in collaboration with the Office of the Data Protection Commissioner.
  • These initiatives aim to address complaints regarding exorbitant interest rates, data misuse, and unethical debt collection tactics in the digital credit sector.

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