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Consumer complaints against Kenya's digital lending industry have surged fivefold, highlighting issues with predatory practices and lack of transparency. Despite government regulation and licensing efforts, borrowers continue to face challenges with hidden fees and aggressive collection tactics.
Why it matters
It underscores the difficulty of regulating rapidly expanding fintech sectors in emerging markets to protect vulnerable consumers.
Complaints against Kenya’s digital lenders have exploded, showing that the country’s fast-growing loan app industry is still struggling to win consumers’ trust. Per the Competition Authority of Kenya (CAK), complaints about digital lenders increased fivefold in the year ended June 2025, making the sector one of the biggest sources of consumer grievances. The regulator said most of the complaints centred on false and misleading representations and unconscionable conduct, raising fresh concerns about how some lenders treat borrowers.
The article reports on regulatory challenges and consumer grievances using data from the Competition Authority of Kenya.
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