Loan apps must now explain decisions their AI makes, and tell you when you are dealing with a bot
Regulation 60 of the Central Bank of Kenya (Non-Deposit Taking Credit Providers) Regulations, 2026 requires lenders that use AI to make credit decisions to explain automated outcomes to customers, to say when a customer is interacting with AI, and to keep human oversight, with expectations on bias, accuracy and accountability. The regulations were gazetted on 29 September as Legal Notice No. 191 and extend CBK oversight from digital credit providers to all non-deposit-taking lenders. They also raise the cost of being in the business: a licence application now costs KSh100,000, up from KSh5,000, the annual fee for licensed providers rises from KSh20,000 to KSh500,000, registered providers pay KSh250,000 a year, and paying late carries a KSh1 million penalty. Separately, the CBK has proposed that lenders stop raising credit limits automatically and instead reassess a borrower's current finances before any increase. The market is growing fast. Digital lenders' outstanding loans rose from KSh110.1 billion in December 2025 to KSh153.8 billion in June 2026, across 8.9 million accounts averaging KSh17,281, and the CBK had licensed 281 digital credit providers by September. Most loans are under KSh20,000 and run from a week to two months. Repayment is the worry: in the 2024 FinAccess survey, 16.6% of borrowers had defaulted without repaying anything, up from 10.7% in 2021. If an app turns you down or cuts your limit, you can now ask why, and it has to answer.
Sources: TechTrends