Unlicenced Kenya’s digital lenders cannot recover loans after court ruling

Digital lenders operating without a Central Bank of Kenya (CBK) licence cannot enforce unpaid loans through the courts, a Nairobi magistrate ruled in a decision that could reshape the risks facing unlicenced fintechs. In two judgments delivered on July 17, Resident Magistrate Gladys Kiama struck out debt recovery claims brought by Tri-State Capital Limited and Mombo iCapital Limited, ruling that the digital lending companies lacked the legal capacity to enforce their loan agreements because they