The Central Bank of Kenya (Non-Deposit Taking Credit Providers) Regulations, 2026 (Legal Notice 191 of 2026) raised the cost of staying authorised and tied late payment to revocation. Lenders used to the Digital Credit Providers Regulations, 2022 will notice the change straight away: the annual fee that was KES 20,000 is now KES 500,000 for a licensed provider. This article sets out the fees, the late payment rules, and the full list of grounds on which the Central Bank of Kenya (CBK) can suspend or revoke a licence or registration.
The Fee Schedule
The Third Schedule to the Regulations sets four fees:
- KES 100,000 on application for a licence or registration. The application fee is non-refundable (regulations 6(2)(z) and 9(3)(p)).
- KES 500,000 on the granting of a licence, and annually.
- KES 250,000 on the granting of a certificate of registration, and annually.
- KES 1,000,000 as a late penalty fee, on payment of the annual fee after 31 December.
On those figures, the CBK charges to get started are KES 600,000 for a licence (application plus grant fee) and KES 350,000 for registration. Under the 2022 Regulations, an application cost KES 5,000 and the annual fee was KES 20,000. These are CBK’s fees only. They do not include professional fees, incorporation and name approval costs, or the other government and third-party charges that accompany an application.
When Annual Fees Fall Due
Regulations 7(4) and 10(4) require a licensed or registered provider to pay the annual fee on or before 31 December every year, in a lump sum or in such manner as CBK specifies. A provider that pays late, but within three months after 31 December, pays double the annual fee (regulations 7(5) and 10(5)). If the fee is not paid in accordance with that rule, CBK may revoke the licence or registration (regulations 7(6) and 10(6)).
The Third Schedule’s late penalty fee is a single figure of KES 1,000,000, which equals double the licence fee. For a registered provider, double the annual fee would be KES 500,000, and the Schedule does not give a separate figure for registrations. A registered provider that misses the deadline should ask CBK in writing which amount it will charge, rather than assuming.
Grounds for Suspension or Revocation
Regulation 21(1) lists the grounds on which CBK may suspend or revoke. The list is long, and several grounds are easy to trip over in ordinary operations. Among them, a provider can lose its authorisation if it:
- fails to comply with an administrative action under the Data Protection Act, including an enforcement notice or order for compensation from the Data Protection Commissioner (21(1)(a));
- fails to comply with Part VII of the Consumer Protection Act, or with Competition Act enforcement action on unconscionable behaviour and false or misleading information (21(1)(b) and (c));
- fails to comply with the anti-money laundering and terrorism financing laws (21(1)(d));
- fails to comply with the Land Act or the Movable Properties Securities Rights Act when recovering security (21(1)(e) and (f));
- contravenes a licensing or registration condition, or fails to pay annual fees or a monetary penalty (21(1)(g) and (h));
- fails to comply with a CBK guideline, circular or directive, or to take corrective measures when directed (21(1)(i) and (k));
- gave false information during the application process (21(1)(l));
- fails to comply with its own code of conduct, to resolve a customer complaint as required, or imposes unreasonable or unjustifiable charges on a loan (21(1)(n), (o) and (p));
- fails to commence business within twelve months of licensing or registration, fails to file prescribed returns on time, or cannot conduct a viable business for the period CBK determines (21(1)(r), (s) and (t)); or
- carries on a prohibited activity or an illegal activity, goes into liquidation or is wound up (21(1)(v), (w) and (z)).
The twelve-month rule matters for new entrants. A provider that is licensed but delayed in launching its product risks revocation before it has lent a shilling.
Process and Consequences
CBK must tell the provider in writing why it intends to suspend or revoke and give it an opportunity to be heard first (regulation 21(2)). It must publish the names of providers whose licences or registrations are suspended or revoked in the Gazette within thirty days (regulation 21(5)).
The consequences differ by action:
- Suspension. CBK specifies the period. During it, the provider may not grant new loans or carry on other permissible activities, but it may keep receiving loan repayments and settle its liabilities (regulation 21(3) and (4)).
- Revocation. The provider must cease business (regulation 21(6)). CBK may by written notice require it to transfer customer records, update credit reference bureau records, close down its operations on conditions, or collect repayments and settle liabilities for a period it specifies (regulation 21(7)).
Carrying on the business without authorisation, including after revocation, attracts the penalty in section 33S(10) of the Central Bank of Kenya Act: imprisonment for up to three years, a fine of up to five million shillings, or both. The same penalty applies to a person who understates initial capital to qualify for registration (regulation 9(4)).
Practical Steps
Put the 31 December payment date in the compliance calendar for the year, not the quarter. Reconcile the fee against the Third Schedule before paying, and keep proof of payment. Check each ground in regulation 21(1) against the provider’s existing controls, especially complaint handling, returns and Data Protection Commissioner compliance. If you are weighing whether to hold the business as a registered provider or a licensed one, our article on the KES 20 million licence or registration test compares the two routes, and our note on the 29 March 2027 deadline covers lenders still outside the regime.
How We Can Help
Clay & Associates Advocates advises credit providers on compliance calendars, responses to CBK notices, representations before suspension or revocation and the closing-down process. See our overview of CBK credit provider licensing or contact our regulatory and compliance practice.
Sources: Central Bank of Kenya (Non-Deposit Taking Credit Providers) Regulations, 2026 (Legal Notice 191 of 2026), regulations 6, 7, 9, 10 and 21 and the Third Schedule; Central Bank of Kenya Act (Cap. 491), section 33S; Central Bank of Kenya (Digital Credit Providers) Regulations, 2022 (revoked).
Frequently asked questions
How much does a CBK credit provider licence cost?
CBK charges KES 100,000 on application and KES 500,000 on grant, and KES 500,000 each year after that, under the Third Schedule. Registration costs KES 100,000 on application and KES 250,000 on grant and annually.
When is the annual fee due?
On or before 31 December each year (regulations 7(4) and 10(4)).
What happens if I pay the annual fee late?
Payment within three months after 31 December costs double the annual fee, and CBK may revoke the licence or registration if the fee is not paid as the Regulations require.
Can CBK revoke without a hearing?
No. Regulation 21(2) requires CBK to give written reasons and an opportunity to be heard before it suspends or revokes.
Need advice on your own matter?
Tell us what you are dealing with. You will know what it involves and what it costs before you commit.
This article is general information on Kenyan law as at its publication date, not legal advice. Reading it does not create an advocate and client relationship.
