Sharp Daily
No Result
View All Result
Tuesday, June 3, 2025
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
Sharp Daily
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team
No Result
View All Result
Sharp Daily
No Result
View All Result
Home News

Kenya to regulate buy-now-pay-later sector with new laws

Teresiah Ngio by Teresiah Ngio
November 20, 2024
in News
Reading Time: 1 min read
Kenya's Supreme Court judges file into the chamber during the opening of the 11th Parliament in the capital Nairobi April 16, 2013. REUTERS/Noor Khamis (KENYA - Tags: POLITICS) - RTXYNP5

Kenya's Supreme Court judges file into the chamber during the opening of the 11th Parliament in the capital Nairobi April 16, 2013. REUTERS/Noor Khamis (KENYA - Tags: POLITICS) - RTXYNP5

The National Assembly Committee on Finance and National Planning has initiated legislative efforts to regulate Kenya’s Buy-Now-Pay-Later (BNPL) credit sector. These proposals, outlined in three Bills—the Tax Laws (Amendment) Bill 2024, the Tax Procedures (Amendment) Bill 2024, and the Business Laws (Amendment) Bill 2024—aim to address concerns over consumer exploitation and predatory lending practices.

This initiative follows a petition by boda boda operators, who raised concerns about unfair practices by BNPL firms. “The proposed amendments are a necessary step to protect vulnerable borrowers from financial exploitation while ensuring the sector operates transparently,” noted a representative from the Finance and National Planning Committee.

The amendments include new consumer protection measures that set clear conditions for micro-lending, provide transparent information on financial costs, and define the responsibilities of both borrowers and lenders.

Key among the proposals is an amendment to the Central Bank Act, which would require non-deposit-taking credit providers to obtain licenses and adhere to regulations enforced by the Central Bank of Kenya (CBK). This move seeks to combat illegal lending practices and bring unregulated credit providers under official oversight.

RELATEDPOSTS

All you need to know about the Cytonn Money Market Fund

May 16, 2025

Kenya to allocate KES 1.82 billion for cryptocurrency regulation

January 15, 2025

“The proposed regulations will ensure fairness and accountability in the BNPL credit sector,” stated a CBK official. “By requiring licensing, we can enforce a code of conduct that protects consumers.”

The Business Laws (Amendment) Bill 2024 further mandates that microfinance businesses provide borrowers with accurate information about loan terms and financial costs while safeguarding borrower confidentiality. These provisions aim to improve transparency and promote ethical practices in the sector.

To address concerns about unethical loan recovery practices, the legislation explicitly prohibits lenders from harassment or using violence during debt collection. “During debt collection or loan recovery, non-deposit-taking microfinance businesses are prohibited from harassing, abusing, or oppressing borrowers or guarantors, using threats or violence, or employing obscene or profane language,” the Bill states.

Previous Post

CBK rolls out updated banknotes with enhanced security features

Next Post

East african revenue authorities push for tax harmonization and AI adoption

Teresiah Ngio

Teresiah Ngio

Related Posts

News

Co-op Bank posts KES 6.9 billion profit in Q1’2025

May 16, 2025
Agriculture And Economy
News

Lets get Kenya out of FATF list

May 9, 2025
News

The downside of Impact Investing

May 2, 2025
News

Leadership challenges at the University of Nairobi

April 24, 2025
News

Easter eggs and earnings: Growing your nest egg with CMMF

April 16, 2025
News

Geoffrey Ruku declares KES 377M net worth during CS vetting

April 15, 2025

LATEST STORIES

Best investments for Kenyan seniors: Secure, predictable & low-risk

May 30, 2025

Why June is the Secret Sweet Spot for Travel

May 30, 2025

Strategies to elevate more women to corporate leadership

May 30, 2025

Tap on Kenya’s 2025 tech revolution

May 30, 2025

How CURBS supports employers and employees

May 30, 2025

NSE deserves more attention from young investors

May 29, 2025

The silent strain of remote work on Kenya’s urban workforce

May 29, 2025

How Kenya’s crypto bill could reshape the digital economy

May 29, 2025
  • About Us
  • Meet The Team
  • Careers
  • Privacy Policy
  • Terms and Conditions
Email us: editor@thesharpdaily.com

Sharp Daily © 2024

No Result
View All Result
  • Home
  • News
    • Politics
  • Business
    • Banking
  • Investments
  • Technology
  • Startups
  • Real Estate
  • Features
  • Appointments
  • About Us
    • Meet The Team

Sharp Daily © 2024