The Central Bank of Kenya (Amendment) Bill, 2020 (the “Bill”) was published on 19 June 2020. Approved by the Parliament on On 25th February, 2021 and is now before the National Assembly Committee and National Planning presented in April 2021.

Through this Bill, the Central Bank of Kenya (“CBK/the Bank”) is seeking the mandate to supervise and regulate digital financial products and services by licensing digital credit service providers who are not regulated under any other law. This is because, as there is currently there is no legal framework governing digital borrowing platforms in Kenya, CBK has the obligation to ensuring that there is a fair and non-discriminatory marketplace for access to credit by the public.


The Bill seeks to amend the Central Bank of Kenya Act Cap 491 of the Laws of Kenya (the “Act”) to include the following new definitions:

  1. “digital channel” means the internet, mobile devices, computer devices, applications and any other digital systems as may be prescribed by the Bank;
  2. “digital credit” means a credit facility or arrangement where money is lent or borrowed through a digital channel;
  3. “digital credit business” means the business of providing credit facilities or loan services through a digital channel;
  4. “digital credit provider” means a person licensed by the Bank to carry on digital credit business;
  5. “specified digital credit provider” means a licensed digital credit provider within the meaning of section 33R.


  1. Digital credit lenders now have a defined law that governs them and that enables the CBK to provide oversight in the supervision and enforcement of the laws, thereby providing stability in the industry.
  2. The law now allows for the monitoring on the interest rates charged by digital credit lenders, thereby enhancing consumer protection is enhanced
  3. The inclusion of definitions relating to digital credit provides room for the addition of other forms of innovations that may be coming up in the future to be covered under the Act without need for additional amendments to it.


The formulation of the draft Bill is a clearly a welcome solution to the regulation of the fast growing mobile money and digital credit industry in Kenya which have been providing non-deposit taking financial services without being regulated under the Banking Act Cap 488 and the Micro-Finance Act 2006.

In the meantime, we are keenly following up on the enactment process of the Bill and shall keep you updated on the process of its enactment.

Please contact us in case of any queries or clarifications via our email at info@netsheria.com or call us on +254 716209673

Nuts & Bolts of Cloud Computing & Cyber Security in Kenya

November 20, 2023|0 Comments

Embark on a journey through Kenya's cloud and cybersecurity terrain. From the versatility of cloud services to the nuances of SaaS, IaaS, and PaaS, discover the digital frontier. Uncover the vital connection between cloud and cybersecurity, defending against phishing and malware. In a world of constant evolution, staying ahead in tech is not a choice but a necessity.

Cloud Computing & Cyber Security in Kenya

October 30, 2023|0 Comments

In the realm of technology, cloud computing takes center stage, delivering services like data storage and software through the internet. Learn about public, private, and hybrid clouds, and the three key types of cloud computing: SaaS, IaaS, and PaaS. However, with the convenience of the cloud comes the critical need for cybersecurity. Discover how to safeguard digital assets from threats like phishing, malware, eavesdropping, and DDoS attacks.

Professional Masquerading: Quack lawyer finally unmasked 

October 25, 2023|0 Comments

In a shocking revelation, an imposter known as 'Brian Mwenda' operated as a lawyer, winning multiple cases despite lacking legal qualifications. The Law Society of Kenya is now investigating this case, shedding light on the vulnerability of the legal system. Learn more about this alarming situation and its potential consequences.