Unlicensed lender took your money Kenya 2026: what to do

What to do if an unlicensed lender takes your money in Kenya (2026)

The practical playbook. Verify the lender via CBK, complaint to CBK Consumer Protection 0800 720 000, DCI Cybercrime for fraud, civil court for contract enforcement, COFEK for media escalation, and honest expectations about what each route can and cannot do.

by Arnold Ochieng Reviewed by Michael Mwangi 11 min read Updated 26 August 2026Verified 26 Aug 2026

This page is for the specific situation where you have already given money (a "processing fee", a deposit, an upfront "guarantee") to a Kenyan lender who turns out to be either not in the CBK register or, on closer inspection, not who they claimed to be. It is also relevant if you have signed a loan agreement and are now discovering the counterparty is not CBK-licensed.

First: confirm the lender's status

Before invoking any external route, be sure of the facts. It is common to conclude a lender is unlicensed when the actual issue is a name mismatch on the CBK register (Tala is listed as Inventure Mobile Ltd, M-KOPA is listed as M-Kopa Loan Kenya Ltd). Do the following:

Cross-check the CBK non-deposit taking credit providers register with paybillke's CBK Licence Checker. Search the exact registered company name, not the trade name.
Write to the lender requesting their CBK non-deposit taking credit provider licence number and date, in writing.
If they cannot produce a licence number, that answers your question.

For the general playbook, see how to check if a lender is licensed in Kenya, in 2 minutes.

Second: CBK Consumer Protection

Call 0800 720 000 and file a complaint. Note the following about what CBK can and cannot do:

Against a licensed lender: CBK has real leverage. A conduct complaint that is upheld can lead to sanctions and, in serious cases, licence revocation.
Against an unlicensed lender: CBK's formal route is criminal referral, because unlicensed operation is a section 33S offence under the 2024 Act [Source 1]. That referral goes through the ODPP and DCI. The upshot for you is that the state may prosecute the entity, but the criminal case is not the same as you getting your money back.

File the complaint anyway. The paper trail matters, and CBK's enforcement priorities are shaped by the volume and pattern of complaints they see.

Third: DCI Cybercrime, if the situation involves fraud

If money was taken under false pretences (fake app, fake "approval fee", disappearing counterparty), that is a fraud offence and belongs with the Directorate of Criminal Investigations (DCI) Cybercrime unit. Bring:

Your M-PESA statement showing the transfer to the alleged lender.
Screenshots of the WhatsApp / SMS / app conversation.
Any signed contract, terms, or product materials.
Your written communication to the lender requesting their CBK licence number and their reply (or non-reply).

DCI can, in principle, freeze M-PESA / bank accounts and trace funds. In practice, the case load is high and outcomes depend heavily on the size of the amount and how identifiable the counterparty is.

Fourth: civil court for contract enforcement

A written contract is a written contract regardless of the lender's licence status. That does not mean every clause of an unlicensed lender's contract is enforceable (public policy defences may apply, particularly where the lender was acting unlawfully in offering the credit), but it does mean you have a route to a court decision on the specific transaction.

For small amounts (currently up to a specific threshold, verify against the Small Claims Court Act at time of filing), the Small Claims Court is faster and cheaper than the High Court. For larger amounts, the High Court commercial division. Legal advice is worth its cost here; the routes are real but the paper preparation matters.

Fifth: COFEK media escalation

The Consumers Federation of Kenya (COFEK) publishes and campaigns on unlicensed lending. Where a lender is behaving badly at scale, a well-documented case shared with COFEK can generate the kind of public pressure that a formal complaint on its own does not. This works best where:

You have complete documentation.
You are willing to be named and quoted.
The behaviour is part of a pattern others can also confirm.

Media pressure is not enforcement, but it changes the calculus for both the lender and the regulator.

Reasonable expectations

Under the 2024 law [Source 1], unlicensed operation is criminal. That gives CBK and the state a genuine lever they did not have before 27 December 2024. But the criminal case is the state's, not yours. If your immediate need is to recover a specific amount of money, the criminal route may run in parallel with your civil claim but it will not by itself put money back into your M-PESA.

The honest scoping:

Small amounts to a hard-to-identify counterparty: often not recoverable at all. Treat it as a lesson paid for.
Larger amounts, clean paper trail, identifiable counterparty: civil court has a real chance. Timeline is many months.
Any scale, with a pattern of similar complaints: parallel CBK + DCI + COFEK route is the way to shape a response.

Prevention going forward

For future transactions, the two-minute check before signing is worth learning. See how to check if a lender is licensed in Kenya, in 2 minutes. For the wider context on what a licence protects, see why CBK licensing matters if you are borrowing and your rights under the CBK Code of Conduct.

If you are also dealing with a default or repossession issue on the same or a related debt, see what to do if you cannot pay this month and how to get off CRB in Kenya.

Sources appendix

Business Laws (Amendment) Act No. 20 of 2024, Republic of Kenya. In force 27 December 2024. Section 33S penalties of up to 3 years imprisonment or KES 5 million for unlicensed non-deposit-taking credit business.
Central Bank of Kenya. Digital Credit Providers Code of Conduct, extended to non-deposit credit providers under the 2024 amendments. CBK Consumer Protection line 0800 720 000.
Central Bank of Kenya. Register of non-deposit-taking credit providers, April 2026 publication.
Small Claims Court Act, Republic of Kenya. Basis for the fast-track civil claim route for small-value disputes. Verify current threshold at the time of filing.

FAQ

Is it illegal for a lender to operate without a CBK licence?

Yes. Since 27 December 2024, under the Business Laws (Amendment) Act No. 20 of 2024, non-deposit-taking credit business must be CBK-licensed. Section 33S sets penalties of up to 3 years imprisonment or KES 5 million for unlicensed operation.

Will CBK force the unlicensed lender to give me my money back?

CBK Consumer Protection can receive complaints and use its enforcement leverage against licensed lenders effectively. Against unlicensed lenders, CBK's route is criminal referral (through the DPP), which is a state matter, not a direct route to recovering your money.

Is the contract still valid if the lender is unlicensed?

A written contract is generally enforceable between the parties regardless of licence status, but public policy defences may be available where the contract itself was for an unlawful activity. Court advice is required to test this properly for a specific contract.

What is the fastest realistic recovery route?

Depends on the amount and the paper trail. Small amounts with weak paper trails often are not recoverable at all. Larger amounts with a written contract, an M-PESA statement showing the transfer, and an identifiable counterparty are best pursued through civil small claims court, alongside a formal complaint to CBK and, where fraud is involved, DCI Cybercrime.