Know your rights. Stop harassment. Fight illegal practices. Everything you need to protect yourself as a borrower in Kenya.
Every day, thousands of Kenyans face harassment, threats, and illegal practices from lenders and debt collectors. Your photo gets posted on social media for unpaid loans. Debt collectors call your employer and family members repeatedly. Lenders threaten jail time. Your M-PESA gets drained without authorization.
Here's the truth: Most of these practices are ILLEGAL. You have rights, and this guide will show you exactly what they are and how to enforce them.
Of Kenyans have experienced loan harassment
Consumer Federation of Kenya, 2024
Unlicensed lenders shut down by CBK in 2024
Central Bank of Kenya
Successful complaints filed against illegal practices
CBK Consumer Help Desk, 2024
Borrower rights in Kenya are protected by multiple laws and regulations. Understanding these legal protections empowers you to stand up against abuse.
Establishes fundamental consumer rights including right to fair treatment, clear information, and protection from harassment. Lenders must provide complete disclosure of all terms, fees, and conditions.
Key Protection: Prohibits unfair, unreasonable, or deceptive practices by suppliers (including lenders).
Regulates all licensed financial institutions. Requires banks to conduct business with integrity and treat customers fairly. Establishes CBK as the supervisory authority with power to sanction violators.
Key Protection: Only licensed institutions can offer certain financial services. Unlicensed lenders face prosecution.
Sets specific standards for responsible lending, fair debt collection, transparent disclosure, and complaint handling. Mandates affordability assessments before loan approval.
Key Protection: Lenders must assess your ability to repay before giving loans. They cannot lend recklessly.
Protects your personal information. Lenders cannot share your data (name, photo, contact info, financial details) with unauthorized parties or publish it publicly without your consent.
Key Protection: Posting your photo/details on social media for non-payment is ILLEGAL and punishable by fines up to KES 5 million.
Governs how CRBs collect, store, and share your credit information. Lenders can only list you after 90+ days default. You have the right to dispute incorrect listings.
Key Protection: CRB listing requires specific procedures. Immediate listing without 90-day grace is illegal.
These are your fundamental rights when borrowing in Kenya. Any lender who violates these rights can be reported and faces serious penalties.
You have the right to be treated with dignity and respect throughout the loan process - from application to repayment to default (if it occurs).
Before you sign anything, lenders MUST disclose all loan terms in clear, simple language you can understand.
Hidden fees are ILLEGAL. If they didn't disclose it upfront, you can dispute it.
Your personal information is protected by law. Lenders can only use it for legitimate lending purposes.
Lenders must assess your ability to repay before giving loans. Terms should be reasonable and achievable.
If a lender treats you unfairly, you have multiple avenues to seek justice.
You have the right to pay off your loan before the agreed date. While some penalties may apply, they must be disclosed upfront and be reasonable.
Only licensed financial institutions can legally offer certain loan products. You have the right to verify lender legitimacy.
Recognize these red flags. If a lender does any of these, they're operating illegally, and you can report them.
Red Flags:
Action: Do NOT borrow from unlicensed lenders. Report them to CBK immediately.
Warning Signs:
Action: Walk away from predatory lenders. They profit from your struggle.
Illegal Practices:
Action: Demand full fee breakdown in writing before signing. Dispute undisclosed charges.
Illegal Actions:
Action: Document everything. Report to CBK and police. This is criminal harassment.
Illegal Practices:
Action: NEVER share your M-PESA PIN. Report unauthorized deductions to Safaricom and CBK.
Illegal Actions:
Action: This violates Data Protection Act. Report to Office of Data Protection Commissioner - they can fine violators up to KES 5 million.
Even if you default on a loan, debt collectors have strict legal limits on how they can pursue payment. Know the boundaries so you can identify when they cross the line.
Having debt does not strip you of your human rights. Even if you owe money, you deserve respect and dignity. Debt collectors who cross legal boundaries can be reported, fined, and even prosecuted. Document every interaction (screenshots, recordings, call logs) to protect yourself.
Credit Reference Bureaus (CRBs) maintain your credit history. You have specific rights regarding how your information is collected, stored, and used.
Metropol CRB
TransUnion Kenya
Creditinfo Kenya
Learn more: Complete Guide to Removing CRB Blacklisting
If a lender or debt collector violates your rights, don't stay silent. Here's exactly how to report them step by step.
Before reporting, gather evidence. The more documentation you have, the stronger your case.
All licensed financial institutions must have internal complaints procedures. Try this first.
What to Include in Your Complaint:
Send via email and keep a copy. They should respond within 14 days. If no response or unsatisfactory response, escalate.
CBK regulates all licensed financial institutions and digital lenders. They take consumer complaints seriously and can sanction violators.
Central Bank of Kenya - Consumer Help Desk
Contact Methods:
Physical Address:
Haile Selassie Avenue
Nairobi, Kenya
Monday-Friday: 8am-5pm
CBK investigates complaints and can fine, suspend, or revoke licenses of institutions that violate regulations.
If lender posted your photo/details online or violated your privacy, report to the Office of the Data Protection Commissioner.
Office of the Data Protection Commissioner
Data Protection Act violations can result in fines up to KES 5 million or 1% of company's annual turnover. Take screenshots before they delete the evidence!
COFEK advocates for consumer rights and provides free assistance with complaints and legal guidance.
Consumer Federation of Kenya (COFEK)
COFEK often escalates serious cases to media and regulators, creating pressure for resolution.
Some violations are criminal offenses. Report these immediately to police.
Report to Police If:
Visit your nearest police station with your evidence. Get an OB (Occurrence Book) number for your records.
For serious violations, you can take legal action.
If you're currently experiencing harassment from lenders or debt collectors, take these immediate actions to protect yourself.
When under harassment, many borrowers make things worse by:
Instead: Report the harassment, seek help from authorities, and work on a realistic repayment plan separately. Don't let bullies force bad financial decisions.
Kituo Cha Sheria (Legal Aid)
Free legal assistance for low-income Kenyans
Phone: +254 20 387 6290 | Website: kituochasheria.or.ke
FIDA Kenya (Women's Legal Aid)
Legal support especially for women facing harassment
Phone: +254 20 387 2194 | Website: fidakenya.org
Kenya Human Rights Commission
Severe human rights violations
Phone: +254 20 270 5034 | Website: khrc.or.ke
Many violations happen because borrowers don't fully understand their loan agreements. Here's what to look for and what red flags to watch for.
Walk away or demand changes if you see these warning signs:
If they can't or won't answer these questions clearly, DO NOT BORROW from them.
Remember: Loan terms are often negotiable, especially with banks and SACCOs. Try these:
Learn more: Complete Guide to Negotiating Loan Terms
The Central Bank of Kenya has issued specific guidelines that all licensed financial institutions must follow. These protect you as a borrower.
Licensed lenders MUST:
Lenders must disclose:
CBK guidelines prohibit:
Before borrowing, verify the lender is licensed:
Step 1: Check CBK Website
Visit centralbank.go.ke and look for "Licensed Institutions" or "Supervised Institutions" section. Search for your lender's name.
Step 2: Ask for License Number
Legitimate lenders proudly display their CBK license number. Ask for it and verify it on CBK website.
Step 3: Check Digital Lenders Association
For app-based lenders, check if they're members of Digital Lenders Association of Kenya (website: digitallenderskenya.org).
While Kenya doesn't have a strict interest rate cap currently, CBK guidelines state rates should be "reasonable and not exploitative."
If you're charged excessive rates, report to CBK. While not technically "illegal," exploitative rates violate fair lending principles.
NO. Unpaid loans are civil matters, not criminal offenses. You cannot be jailed for owing money. The only exception is if you obtained the loan through fraud (using fake documents, false information). If a debt collector threatens jail time, they're lying - report them immediately to CBK and police.
They can verify your employment ONCE. However, repeated calls to your employer or discussing your debt with colleagues constitutes harassment and is illegal. If this happens, document it and report to CBK. Your employer is not responsible for your personal debts (unless it's a check-off loan).
If you pay off the debt and get clearance from the lender, the negative listing should be removed within 30 days of submitting proof to CRB. If you NEVER pay, negative listings remain for 5-7 years from the date of default. However, once paid, you should be delisted immediately - not wait years.
NO. Lenders need your explicit authorization for each deduction or a clear written agreement for scheduled automatic payments. Random, unauthorized deductions are illegal. If this happens: (1) Report to Safaricom immediately (call 100), (2) Report to CBK, (3) Report to Data Protection Commissioner, (4) File police report. Never share your M-PESA PIN with lenders.
Don't ignore it! Take these steps: (1) Contact your lender immediately and explain your situation, (2) Request loan restructuring (longer term, lower payments), (3) Propose a realistic payment plan, (4) Get everything in writing, (5) Prioritize this debt to avoid CRB listing. Most lenders prefer to work with you rather than push you into default. Communication is key.
Yes! Especially if you're facing financial difficulties. Lenders can restructure loans, extend terms, reduce payments, or even offer payment holidays. The earlier you reach out, the more options you have. Waiting until you're 90+ days in default reduces your negotiating power. Read our guide:How to Negotiate Loan Terms
Follow this order: (1) Document everything - screenshots, recordings, call logs, (2) File written complaint with lender's head office, (3) Report to CBK Consumer Help Desk (0800 242 625 or customercare@centralbank.go.ke), (4) For privacy violations, report to Data Protection Commissioner (info@odpc.go.ke), (5) For threats/intimidation, file police report. See our detailed reporting guide above.
NO. Many app-based lenders operate without proper licensing. Before downloading any loan app: (1) Check if they're listed on CBK website under supervised institutions, (2) Verify membership with Digital Lenders Association of Kenya, (3) Read reviews carefully - lots of harassment complaints are red flags, (4) Check if they display license number in app/website. If they're unlicensed, don't borrow - and report them to CBK.
ABSOLUTELY NOT. This is a severe violation of the Data Protection Act 2019. Publishing your photo, name, ID number, or any personal details on social media, WhatsApp, or any public forum is ILLEGAL. Penalties include fines up to KES 5 million. If this happens: (1) Take screenshots immediately before they delete, (2) Report to Office of Data Protection Commissioner urgently, (3) Report to CBK, (4) Consider suing for damages.
Ignoring doesn't make it go away. Here's what happens: (1) Interest and penalties accumulate, (2) After 90 days, you're listed on CRB, (3) CRB listing blocks you from all future loans, bank accounts, and some jobs, (4) Lender may take legal action, (5) If you provided collateral, they can recover it through court, (6) The negative listing stays 5-7 years if never paid. Better approach: Face it, negotiate, and resolve it.
YES! Being in default does NOT strip you of your rights. You still have the right to: fair treatment, no harassment, privacy protection, dispute incorrect amounts, negotiate repayment, be contacted only during reasonable hours, and report violations. Owing money doesn't give lenders permission to abuse you. Your fundamental human rights remain intact.
Several organizations offer free legal assistance to Kenyans:
Knowledge is power, but action is change. If you're experiencing any violations:
Every complaint filed, every violation reported, makes the lending ecosystem safer for all Kenyans. Stand up for your rights.
Central Bank of Kenya
0800 242 625
customercare@centralbank.go.ke
Data Protection Commissioner
+254 20 262 5000
info@odpc.go.ke
Consumer Federation (COFEK)
+254 722 230 134
info@cofek.co.ke
Kituo Cha Sheria (Legal Aid)
+254 20 387 6290
kituochasheria.or.ke
If you're experiencing harassment RIGHT NOW, stop reading and take action immediately. Report to CBK today.
CBK: 0800 242 625
Help others know their rights. Share this guide with friends and family who may be experiencing harassment or need to understand their borrower rights.