The Central Bank of Kenya (CBK) has invited public comments on the Draft Financial Consumer Protection Framework, which aims to address the growing threat of fraudulent financial transactions.
CBK stated that the Framework has been developed to establish overarching standards for fair treatment, transparency, product suitability, protection of consumer assets, responsible business conduct, and enhanced supervision of market conduct across Kenya’s financial sector.
“It is anchored on six consumer protection principles, namely: fair treatment, transparency, product suitability, asset protection, accessible complaints handling, and data privacy,” CBK said.
CBK noted that the rapid expansion of digital financial services has introduced new and complex risks that demand heightened regulatory attention.
The bank regulator added that consumers increasingly face emerging threats, including fraud, phishing attacks, misuse of personal data, non-transparent fees, predatory lending practices, and rising levels of over-indebtedness.
According to CBK, these emerging challenges, coupled with longstanding issues such as inadequate disclosure, weak complaint-handling mechanisms, and uneven consumer safeguards across sectors, have exposed gaps in consumer protection frameworks and highlighted the need for stronger market conduct standards, enhanced transparency requirements, and more robust safeguards across the financial services ecosystem.
New CBK Framework Targets Hidden Fees and Forced Financial Bundles
The Framework establishes unified regulatory standards, strengthens market conduct supervision, enhances cooperation among regulators, and improves consumer awareness and financial literacy.
It seeks to curb phishing attacks, misuse of personal data, predatory lending, hidden fees, and over-indebtedness amid the rapid expansion of the digital financial services ecosystem.
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Under the proposed rules on tied selling, a financial services provider (FSP) will not be allowed to force a retail customer to buy another financial product or service from the same institution or its affiliates as a condition for accessing a desired product or service.
The only exception is where a payment service is directly linked to an account.
On bundling, FSPs will only be allowed to sell financial products or services as a package if they are either operationally and functionally dependent on each other, meaning one cannot work without the other, or if certain strict conditions are met.
These conditions include that each product in the bundle must also be available for separate purchase, have similar terms whether sold individually or in a bundle, offer clear benefits to the consumer, and meet all disclosure requirements.
The framework also addresses insurance tying, prohibiting FSPs from making insurance a condition of access to other financial products or services.
However, exceptions apply where insurance is required by law, relates to mortgaged property under a credit agreement, provides payment protection for a loan, or is required by a regulator.
FSPs are also barred from forcing consumers to use a specific insurer or imposing unfair insurance terms, coverage levels, or insurer choices.
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How to Submit Comments
In line with statutory requirements, comments on the draft Framework should be submitted to CBK or the participating regulators by Tuesday, April 28, 2026.
The draft Framework is available on the Central Bank of Kenya website.
All submissions must be made using the prescribed comment submission template, which is likewise available here.
Completed templates may be submitted either electronically to [email protected] or delivered in hard copy to any Central Bank of Kenya office. Please ensure the subject line clearly states: “Public Participation Draft Financial Consumer Protection Framework.”
