Kenyan digital lenders face surge in complaints despite tighter regulation

Complaints against Kenya’s digital lenders jumped to 355 in the year to June 2025, up from 67 a year earlier, making them the top source of financial‑service complaints at 61.6% of the sector’s total. The Competition Authority of Kenya cited misleading representations, undisclosed charges and unilateral changes to loan terms as the main issues. One borrower saw a KES 177,720 loan balloon to KES 500,000 after extra charges were added; the authority had the fees waived and the account closed. Another case involved Mwananchi Credit repossessing a vehicle despite an unresolved dispute. Despite tighter oversight—25 new licences this week bringing the total to 252 licensed lenders since 2022, with over 800 applications pending—problems persist. Licensed lenders have issued 8.3 million loans worth KES 150 billion ($1.16 billion) by May 2026. For Nigerians, where digital lending is also expanding rapidly, this underscores the need to read loan agreements carefully, watch for hidden fees, and know how to lodge complaints with regulators like the FCCPC if terms change unfairly or charges seem excessive.

SOURCE: https://techcabal.com/2026/07/16/digital-lenders-kenya-consumer-complaints/