Digital Credit Providers (DCPs) in Kenya are now requiring customers to go through stronger identity checks before they can access loans through apps or websites. This includes submitting a valid national ID and taking a live selfie during registration or loan application.
This change has been introduced following new and stricter rules from the Central Bank of Kenya (CBK), which is pushing for better security in the digital lending space.
While some users feel that sharing more personal data is an invasion of privacy, lenders say the extra steps are meant to protect customers and reduce fraud cases.
According to the lenders, these new requirements are part of improved Know Your Customer (KYC) procedures. KYC simply means verifying who a customer really is before offering them financial services.
Digital lenders are now expected to follow these rules more strictly to ensure that every borrower is properly identified and that loans are issued to the right individuals.
Some customers have complained that the process is becoming more complicated compared to earlier times when getting a digital loan only required basic registration details like a phone number and ID number.
However, DCPs insist that users who fail to update their information or complete the verification process may face interruptions or limitations when trying to access loans.
For example, a senior compliance official from Tala explained that completing KYC steps such as ID submission and taking a selfie is a simple but important way to secure customer accounts. The idea is to protect users from fraud while still allowing smooth access to financial services.
The requirement for a selfie is especially important because it acts as a biometric check. In simple terms, it helps the system confirm that the person applying for the loan is the same person on the national ID.
The selfie is matched with ID details to reduce cases of impersonation, identity theft, or someone using stolen information to borrow money illegally.
In fact, even traditional banks now use similar methods when opening new accounts, where customers are required to take a live photo as an extra layer of security. This acts as a final safety check to prevent unauthorized access or account takeovers.
These changes are part of wider regulations under the CBK Act (Amendment) 2021 and the Digital Credit Providers Regulations 2022.
These laws require lenders to do more than just basic verification—they must carefully confirm identity and also assess whether a borrower is capable of repaying the loan before approving credit.
There are also upcoming proposals under the draft Non-Deposit Taking Credit Providers Regulations, 2025, which are expected to make these rules even stricter.
Overall, this shift shows that digital lending in Kenya is becoming more regulated and security-focused. While it may feel stricter for users, the main goal is to reduce fraud, protect customer identities, and create a safer borrowing environment for everyone.
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