Kenya: Central Bank (Amendment) Act including operational license requirement entered into force

On 23 December 2021, the Central Bank of Kenya (CBK) (Amendment) Act, 2021 (Act No. 15 of 2021) was published in the official gazette and entered into force. The act empowers the CBK to license, approve digital channels, set pricing parameters, supervise, and suspend or revoke licences of digital credit providers. Licensing requires applicants to submit documents such as the certificate of incorporation and compliance certificates with data protection and consumer protection laws. The CBK reviews applications within 60 days and can grant, reject, suspend, or revoke licences based on compliance with prescribed conditions and legal requirements. Non-compliance can result in penalties, including imprisonment for up to three years or fines up to KES 5 million. The CBK is also mandated to publish annual lists of licensed digital lenders and notify the public of any licence suspensions or revocations within specified timeframes.