On 21st March 2022, Central Bank of Kenya (CBK) issued a press notice notifying the public that the Central Bank of Kenya (Digital Credit Providers) Regulations, 2022 (the Regulations) are now operational. The Regulations were published via Legal Notice Number 46 of March 2022. The Regulations seek to address concerns raised by the public given the recent significant growth of digital lending particularly through mobile phones. Pursuant to the Regulations, all Digital Credit Providers (DCPs) are now required to be licensed by CBK. Notably, the Regulations expressly prohibit a DCP from using threats, obscene or profane language, accessing customer’s phone book or contacts list, making unauthorized or unsolicited calls or message to the customer’s phone contacts and other contacts, et cetera, in the course of debt collection. All existing DCPs are required to apply to CBK for a license by 17th September 2022 or cease operations.

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