Kenya's digital lenders generated 355 consumer complaints in the year to June 2025, up from 67 a year earlier, according to the Competition Authority of Kenya (CAK). The increase made digital lenders the largest source of grievances in financial services, accounting for nearly two-thirds of sector complaints. The authority attributed the complaints to misleading representations, undisclosed charges, and unilateral changes to loan terms. The surge persists three years after Kenya amended its laws in 2022 to place digital credit providers under Central Bank of Kenya (CBK) supervision, following years of complaints about high borrowing costs, data misuse, and aggressive debt collection. Before the regulatory change, hundreds of lenders operated outside any oversight framework.
Digital Lenders Account for Two-Thirds of Financial Services Complaints
The financial services sector accounted for 564 of the 915 consumer complaints received by the authority during the year, or 61.6% of all reported cases. Microfinance institutions recorded 113 complaints, while Savings and Credit Cooperative Organisations (Saccos) and commercial banks recorded 68 and 28 complaints respectively.
The competition watchdog said digital lenders have "continued to record a high number of cases" over the years, attributing the trend to rapid platform expansion that has widened credit access while generating "violations of consumers' welfare provisions." The authority identified false and misleading representations and unconscionable conduct as the main consumer infringements.
African Capital Limited and Mwananchi Credit Cases Highlight Borrower Disputes
Among the complaints was a case against African Capital Limited, a licensed digital lender, in which a borrower alleged that a KES 177,720 ($1,375) loan had risen to KES 500,000 ($3,869) after additional charges were imposed. The authority said the disputed charges were waived following its intervention, and the loan account closed.
In another case, a borrower complained that Mwananchi Credit repossessed his vehicle two months after issuing a loan, despite an unresolved contractual dispute. The competition authority advised the complainant to pursue the matter through the Small Claims Court, which hears lower-value civil claims.
Other digital lenders named in consumer complaints included Mogo Auto Limited, Supreme Credit Acceptance Limited, Simple Pay Capital Limited, and Premier Credit.
CBK Licenses 25 Additional Digital Credit Providers
The CBK licensed 25 digital credit providers this week, bringing the total number of approved lenders to 252 since licensing began in 2022. More than 500 applicants remain at various stages of the approval process, with the central bank saying it has received more than 800 applications.
According to CBK, licensed providers issued 8.3 million loans worth KES 150 billion ($1.16 billion) by May 2026. Digital lenders have become an important source of consumer credit in Kenya, particularly for borrowers underserved by banks.
FAQ
How many complaints did Kenya's digital lenders receive in the year to June 2025?
Digital lenders received 355 consumer complaints in the year to June 2025, up from 67 a year earlier, according to the Competition Authority of Kenya. This made digital lenders the largest source of consumer complaints in financial services, accounting for nearly two-thirds of the sector's grievances.
When did Kenya place digital lenders under regulatory supervision?
Kenya amended its laws in 2022 to place digital credit providers under Central Bank of Kenya supervision. Before the regulatory change, hundreds of lenders operated outside any oversight framework. The licensing regime began in 2022, and the CBK has since approved 252 digital credit providers.
What was the dispute in the African Capital Limited case?
A borrower alleged that a KES 177,720 ($1,375) loan from African Capital Limited, a licensed digital lender, had risen to KES 500,000 ($3,869) after additional charges were imposed. The Competition Authority of Kenya intervened, and the disputed charges were waived and the loan account closed.
