KENYA

Draft Regulations for Non-Deposit-Taking Credit Providers 

The Central Bank of Kenya (CBK) has released draft regulations for Non-Deposit-Taking Credit Providers (NDTCPs), expanding oversight beyond digital credit providers to strengthen consumer protection, enforce ethical lending, and close regulatory gaps in Kenya’s fast-growing credit market. The proposed rules cover transparency in loan agreements, responsible use of customer data, effective complaint resolution, and fair marketing practices. Members of the public have until September 6, 2025, to submit feedback on the Draft Central Bank of Kenya (Non-Deposit Taking Credit Providers) Regulations, 2025. The draft builds on the Digital Credit Providers Regulations, 2022, under which 126 providers have been licensed. However, persistent issues, such as unethical debt collection, excessive loan charges, and the misuse of personal data, prompted CBK to push for broader reforms. The Business Laws (Amendment) Act, 2024, expanded the CBK Act’s scope to include all non-deposit-taking lenders, replacing the term “digital” with “non-deposit-taking” to clarify the framework’s coverage. CBK says the reforms aim to create a fair, transparent, and inclusive credit market that fosters responsible lending while protecting borrowers from exploitation. 

(Source: CBK)

 

TANZANIA

Private Sector Credit Rises to TSh 30 Trillion

The total credit extended to the private sector increased to TSh 30 trillion as of July this year, up from approximately TSh 29 trillion during the same period last year, reflecting growing business confidence and increased demand for financing amid economic recovery. According to the latest Bank of Tanzania (BoT) monthly economic report, the increase in credit extended to the private sector also reflects the increased investment activities that are expected to boost economic growth. This growth suggests that companies across various sectors are more willing to borrow funds to expand operations, invest in new technologies and increase production capacity. Such increased lending activity is often a positive indicator of private sector dynamism, signalling more vigorous entrepreneurial activity and an expectation of higher future demand.

(Source: Daily News)

 

UGANDA

BoU Sticks to Cautious Monetary Policy

The Bank of Uganda (BoU), under the guidance of its Monetary Policy Committee, has opted to maintain its Central Bank Rate (CBR) at 9.75%, a level that’s been steady since October 2024, in response to persistent global uncertainties and inflation risks. This steady stance has helped sustain low inflation, boost investor confidence, and support robust GDP growth estimated at 6.3% for FY 2024/2025 and projected to hold between 6.0% and 6.5% in FY 2025/2026. Core inflation is expected to remain near the medium-term target of approximately 5%, supported by stable exchange rates, a sufficient food supply, and lower global oil prices. While risks remain, ranging from exchange-rate fluctuations and rising import costs to adverse weather conditions and fiscal pressures, the BoU will closely monitor incoming data to inform future policy adjustments.

(Source: Monitor)

 

RWANDA

Committee Established to Oversee BDF-to-BRD Transition

The Rwandan government has established a special committee to oversee the transition of the Business Development Fund (BDF) into the Development Bank of Rwanda (BRD), marking a significant shift in the country’s approach to business financing. The committee will oversee strategic alignment, ensure continuity of services, and manage the structural integration to minimise disruptions for borrowers and stakeholders. This move is part of broader efforts to streamline operations and improve efficiency in delivering financial services to small and medium enterprises (SMEs). The transition, announced earlier as part of efforts to centralise and bolster Rwanda’s development finance institutions, signifies a concerted push toward a more cohesive and impactful financial architecture.

(Source: The New Times)

 

ETHIOPIA

Ethiopia to Begin Trading Under AfCFTA in September After Several Postponements

Ethiopia is set to commence official trading under the African Continental Free Trade Area (AfCFTA) in September, positioning itself for entry into Africa’s massive $3.4 trillion single market. The government had initially planned to launch its participation in July but has repeatedly extended the timeline as preparations continued. With the government having finalised its tariff schedules, approved eligible goods, and notified fellow member states, Ethiopian exports, ranging from coffee and flowers to leather and textiles, will soon benefit from reduced or zero intra-African tariffs. The move comes amid significant economic challenges, including foreign exchange shortages and inflation, prompting Ethiopia to view AfCFTA integration as a timely economic stimulus. 

(Source: Birr Metrics)