Kenya’s digital lenders could soon face tighter scrutiny, as the Competition Authority of Kenya (CAK) moves to secure legal authority to oversee the sector, following a sharp rise in consumer complaints.

The agency's proposed changes are contained in the Competition (Amendment) Bill 2024.

Already cleared by the Attorney General, the Bill is now headed to the National Assembly for consideration.

If passed, it will grant the CAK power to regulate digital markets, with a strong emphasis on online lending.

CAK Director-General David Kemei said the agency is being overwhelmed by grievances stemming from digital transactions, especially in the lending space.

Read More

  1. DCI allocated Sh150 million to snoop on social media users in revised budget
  2. Govt leases Muhoroni, Chemelil sugar mills for 30 years as MPs seek clarity
  3. Treasury under fire as secret Sh5 fuel levy plan triggers uproar in parliament

“The amendment bill is aimed at giving the Authority the legal muscle to regulate and ensure that competition law and consumer protection is enforced, especially when it deals with digital markets,” Kemei said.

Kemei singled out digital lenders as the most problematic.

“Digital lenders, that is the biggest area,” he said, noting that current regulatory gaps have made it difficult to rein in malpractice.

He explained that the law would open the door for joint efforts with other government agencies.

“And this law gives us now the room to work with other agencies, to rein in anything that is not being done well in that area.”

The authority expects the Bill to be passed by October, after which it plans to issue specific guidelines targeting the digital sector.

These new regulations are expected to define what constitutes fair play in digital commerce and enforce consumer protection more decisively.

The urgency comes amid the rapid growth of Kenya’s digital economy, with mobile lending apps extending billions in credit each year, often with minimal oversight.

If approved, this law would mark a shift in how digital service providers — particularly lenders — operate in a space that has so far remained lightly regulated.