With the new regulatory framework, they will be required to disclose interest rates, late payment and rollover fees before issuing the loans. The CBK expects the move to result in overall cheaper credit.

The bill places digital lenders under the ambit of CBK much like commercial banks, saccos and micro-finance institutions.

The ease of sending and receiving funds via mobile money in Kenya, as well as the country's relatively high internet penetration rate have contributed to their rise. These factors, combined with Kenya's youth unemployment rate (39% according to 2019 Census data) has created a monster that has left financial services regulators scratching their heads.