COURT UPHOLD OPERATIONS OF FOUR DIGITAL LENDERS

The High Court has dismissed a consumer petition that sought to declare the operations of four digital lenders illegal due to their lack of a licence from the Central Bank of Kenya, ruling that disputes over licensing must be resolved through proper regulatory processes. The judgment keeps these lenders operating while emphasising that regulatory mechanisms under the Microfinance Act should be followed for any challenges.

Regulatory Pathways and Consumer Protection

The court’s decision clarifies that consumers and petitioners must engage the regulator and use established legal channels, rather than seeking a blanket ban through the courts, when questioning the legality of digital credit providers. This underscores the importance of formal regulatory frameworks in Kenya’s growing digital lending sector and signals continued oversight by authorities.