Kenyans invited to provide comments on draft Regulations on digital lending

The Central Bank of Kenya is seeking public comments on the new Digital Credit Providers Regulations, which were signed into law by President Uhuru Kenyatta just days after the top bank was granted authority to supervise non-deposit-taking digital lenders by the government.

A communiqué issued on Thursday stated that the regulator has three months, or until March 23, 2022, to publish regulations following the enactment of the Central Bank Amendment Bill, 2021, which was passed into law.

As part of its obligations under the Public Participation Act, the Central Bank of Kenya welcomes interested members of the public to submit comments on the draft Regulations, which can be obtained by visiting the Central Bank of Kenya’s website.

Written comments or representations must be received by the bank by January 21 of the following year and addressed to the director, Bank Supervision, in order to be considered.

The Regulations cover a variety of topics, including licensing, governance, and credit operations for Digital Credit Providers, among others (DCPs).

They also address consumer protection, credit information exchange, and the Anti-Money Laundering and Countering the Financing of Terrorism (AML/CFT) duties of DCPs, among other things.

Digital lenders who are now operating in an unregulated environment have been given until January 21 to furnish information about their operations in order to support an orderly transition to a regulated environment.

Digital lenders seeking licenses will be required to obtain approval from the Data Commissioner, underscoring the stringent safeguards in place to prevent misuse of borrowers’ information.

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