A KSh 100K Fee: Kenya Raises Compliance Costs for Credit Providers

Kenya's Central Bank has raised the compliance fees and tightened operating rules for non-deposit-taking credit providers, widening the regulatory burden on lenders that were previously governed mainly under the digital-credit framework.

The new rules set an application fee of KSh 100K for licensing or registration. Licensed providers will pay KSh 500K annually, while registered providers will pay KSh 250K. A provider that misses the annual payment deadline can face a KSh 1M fine, according to a report published by Business Daily on 3 October 2026.

The changes replace a much cheaper fee structure under the Central Bank of Kenya's Digital Credit Providers Regulations, 2022. The previous application fee was KSh 5K and the annual fee was KSh 20K, meaning the new application charge is 20 times higher and the annual fee for licensed providers is 25 times higher.

What changed?

The regulatory shift follows amendments to the Central Bank of Kenya Act under the Business Laws (Amendment) Act, 2024. The amendments widened the framework from digital credit providers to non-deposit-taking credit providers, bringing a broader range of lenders under CBK oversight.

The CBK's regulatory impact assessment says the expansion was intended to address gaps that remained after the 2022 digital-credit rules, including concerns over the cost of credit, debt-collection practices and the handling of borrowers' personal information. citeturn3search19

The latest rules also give the regulator greater control over changes to credit products. Business Daily reported that providers must obtain prior written approval before introducing a new credit product or changing features of an existing product, including interest rates.

Providers proposing such changes must justify them and notify customers at least 30 days before the changes take effect, according to the report.

The rules also require digital and app-based lenders to provide identifying account information for loan disbursements and repayments and to offer customers a way to opt out of marketing messages after a loan has been fully repaid.

What does it mean?

For lenders, the immediate effect is a materially higher cost of operating within the regulated credit market. The fee increase is particularly significant for smaller providers, although the framework also creates a registration route for firms below the relevant capital threshold.

For borrowers, the more consequential changes are the stronger controls over product changes, customer information and loan recovery. The CBK says the broader regulatory framework is intended to improve consumer protection and bring more non-deposit-taking credit activity under formal supervision. citeturn3search19

The rules come as Kenya continues to expand oversight of digital lending. CBK said on 30 September 2026 that it had licensed 29 additional digital credit providers, bringing the number of licensed providers to 281. citeturn4search1

That expansion means the regulator is overseeing a market that is no longer limited to app-based lenders. The wider non-deposit-taking definition also captures other forms of credit that fall outside sectors already regulated by specific laws.

What should businesses watch?

The bigger issue for credit providers is the shift from a relatively narrow licensing regime to a broader compliance framework.

The CBK's rules place responsibility on providers to maintain credit policies suited to the size and complexity of their businesses, protect customer information and manage changes to credit products within the regulator's requirements. Business Daily reported that providers can also restructure loans in response to borrower requests or after notifying customers, subject to their credit policies.

The changes increase the cost of entry and ongoing compliance, but they also give borrowers clearer protections around product changes, communication and loan recovery.

For lenders, the practical test will be whether they can absorb the higher regulatory costs while keeping credit products commercially viable. For borrowers, the more visible effect should be stronger oversight of how non-deposit-taking lenders design, market and recover loans.