The Central Bank of Kenya (CBK) has unveiled draft regulations that will, for the first time, require all credit guarantee institutions to register or obtain licenses before operating in the country.
In a notice issued Thursday, CBK said the new rules follow amendments to the CBK Act through the Business Laws (Amendment) Act, 2024, giving the regulator power to supervise the rapidly growing sector.
Under the draft framework, registered providers will be required to meet minimum operational standards, while licensed entities will be subjected to stricter measures similar to other financial institutions. These include governance structures, risk management systems, and detailed reporting obligations.
Entities already in the business have been granted a five-year transition window to comply, after which unregistered or unlicensed operators risk penalties.
The draft CBK (Credit Guarantee Business) Regulations, 2025, are now open for public comment until October 15, 2025. The regulator has provided an online platform for stakeholders to submit feedback.
“Entities providing credit guarantee business play a pivotal role in ensuring that critical economic sectors in Kenya, such as MSMEs, continue to access affordable credit sustainably,” CBK noted.
Separately, CBK announced it is working with stakeholders to develop a National Financial Inclusion Strategy (NFIS 2025–2028) to consolidate ongoing reforms, streamline policies, and strengthen Kenya’s financial inclusion agenda.
 has unveiled draft regulations that will, for the first time, require all credit guarantee institutions to register or obtain licenses before operating in the country.){kind=link}