Digital Loan Apps Harassing You? What the Law Says and How to Stop It

The rise of digital credit providers (DCPs) in Kenya has brought financial inclusion, but it has also birthed a terrifying trend: debt shaming. Many Kenyans have experienced the humiliation of unauthorized loan apps calling their employers, texting their parents, and threatening them over delayed payments of a few thousand shillings.

If a digital lender is harassing you, they are breaking Kenyan law. Here is what you need to know and the steps you can take to protect yourself.

The Law on Debt Collection in Kenya

Under the Central Bank of Kenya (Digital Credit Providers) Regulations and the Data Protection Act, lenders are strictly prohibited from using abusive language, threats, or unauthorized data sharing to recover loans.

Specifically, digital lenders cannot:

• Call your contacts, family members, or employer to demand payment.
• Threaten you with physical harm, arrest, or public shaming.
• Access your phonebook or private messages without explicit, ongoing consent.
• Send deceptive messages pretending to be from the police or the Directorate of Criminal Investigations (DCI).

The Role of the Office of the Data Protection Commissioner (ODPC)

The ODPC has heavily cracked down on rogue lenders. If an app scraps your contacts and texts them, this is a severe breach of your data privacy rights. The ODPC can and has fined companies millions of shillings for this exact behavior.

Steps to Take if You Are Being Harassed

Do Not Delete the Messages: Keep all abusive texts, WhatsApp messages, and call logs as evidence.

Check if They are Licensed: Go to the Central Bank of Kenya (CBK) website to verify if the lender is a licensed DCP. Unlicensed lenders operate illegally and should be reported immediately.

File a Complaint with the ODPC: You can file a formal complaint through the ODPC website. Provide your evidence of data misuse.

Report to CBK: If the lender is licensed but using rogue tactics, report them to the CBK, which has the power to revoke their license.

Use Sheria AI to Draft Your Complaint

Filing a legal complaint can feel overwhelming. You can use Sheria AI to instantly generate a formal complaint letter addressed to the ODPC or the CBK regarding harassment from digital lenders. Just tell the AI what happened, and it will format a legally sound letter for you.