MPs Move to Suspend CBK’s New Lending Rules in Major Relief for Digital Lenders

Kenya’s digital lending sector has received a major boost after Members of Parliament raised concerns over new lending regulations introduced by the Central Bank of Kenya (CBK).

The lawmakers have called for the suspension of the rollout of the rules, arguing that some of the proposed requirements could create difficulties for businesses offering loans to Kenyans.

The issue was discussed by the National Assembly’s Delegated Legislation Committee, which questioned whether the regulations followed the law and protected businesses from unfair decisions.

The committee raised concerns about some sections that give the CBK wide powers to demand documents and impose penalties on lending companies. Lawmakers argued that the rules should be clear and should not give regulators unlimited powers.

One of the major concerns was the proposed financial penalties. The committee questioned whether the fines were too high and whether they followed the requirements of the law.

The new regulations were introduced to improve control of lending businesses and protect borrowers from harmful practices. They cover digital loan providers and other businesses that offer credit without taking deposits.

The rules also aim to address high borrowing costs, misuse of customers’ personal information and unfair debt collection methods.

For digital lenders, the proposed suspension could provide more time to understand the requirements and prepare for any changes. It could also give the government and the CBK an opportunity to review the concerns raised by lawmakers.

However, the development does not mean that digital lenders are free from regulation. The CBK has continued to oversee digital credit providers to ensure that they follow the law and protect customers.

The regulations were gazetted on September 29, 2026, and legal experts have noted that they had already come into force. The parliamentary committee’s latest move therefore raises questions about their implementation and possible review.

The discussions are expected to attract attention from digital lenders, borrowers and other financial players.

Many Kenyans will be watching to see whether the CBK will respond to Parliament’s concerns and make changes to the rules.

The main goal will be to find a balance between protecting borrowers and allowing lending businesses to operate fairly.

Source;https://www.facebook.com/share/p/1THxP1ffpd/

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