On 12 November, the Committee on Delegated Legislation instructed the Central Bank of Kenya to suspend the rollout of its Non-Deposit‑Taking Credit Providers Regulations, 2025, after raising concerns over broad administrative powers and penalties.

The draft regulations were designed to bring mobile loan apps, buy‑now‑pay‑later firms and other non‑deposit‑taking credit providers under CBK supervision and to tighten borrower protections.

Under the proposal, lenders with initial capital above Ksh20 million would need a CBK licence, while those below that threshold would require registration, effectively ending unregulated operation.

Key consumer‑protection clauses would ban threats, violence, abusive language and the use of borrowers’ phone contacts for shaming, and would prohibit undisclosed recovery charges.

The draft also gave CBK authority to impose fines up to Ksh2 million or three times the illicit gain, plus daily penalties of Ksh10 000, licence suspension or other sanctions for violations.

MP Samuel Chepkonga warned that the regulations grant the regulator open‑ended discretion, lacking clear limits and public participation, and that the Ksh2 million penalty exceeds the ceiling set by the Statutory Instruments Act.

The committee directed CBK to collaborate with parliamentary legal counsel to review and redraft the contentious provisions before any future implementation.