The Central Bank of Kenya has announced plans to introduce compensation guidelines for victims of digital fraud, in a move aimed at strengthening consumer protection within the fast-growing mobile money and digital wallet sector.
The compensation framework is part of the Kenya National Financial Inclusion Strategy 2025–2028 and comes amid rising cases of fraud targeting digital financial platforms.
CBK noted that the current lack of a clear system for users to seek redress remains a critical gap that must be addressed to safeguard public confidence in digital transactions.
The bank plans to collaborate with other financial sector regulators and the Competition Authority of Kenya to roll out the new guidelines by the end of 2026.
The goal is to create a structured compensation system for users who fall victim to scams and fraudulent schemes within digital financial services.
“The framework highlights capacity building among market players, deployment of digital complaint management systems and enhanced transparency in pricing,” CBK says.
It further notes that progress will be tracked using clear performance indicators, including a reduction in unresolved customer complaints and increased public understanding of financial rights.
According to a 2021 Digital Credit Market Inquiry conducted by the Competition Authority of Kenya in partnership with Innovations for Poverty Action, fraud in mobile financial services remains a major threat to users and takes multiple forms.
The survey showed that 82 percent of respondents had received suspicious calls or messages from unknown individuals asking for money, personal details, or offering fraudulent services.
Although the report does not quantify the total amount lost through fraud in digital financial platforms, it highlights the widespread nature of these scams and the need for structured consumer protection measures.