The Central Bank of Kenya has announced plans to introduce a compensation framework for victims of digital-wallet and e-money fraud, part of its new financial-inclusion strategy for 2025-2028. According to CBK, the move responds to a surge in mobile-money scams and a lack of clear recourse mechanisms for consumers using digital financial services (DFS).
Among the key issues is that during a recent consumer survey 82% of Kenyans reported receiving unsolicited calls or texts asking for money or personal details, and 11% said they had lost money to such schemes. The banking sector itself saw losses of about KSh 1.5 billion from cyber-fraud in 2024, the CBK reported, with the number of incidents more than doubling from the year before.
Under the proposed guidelines, CBK will work with other regulators including the Competition Authority of Kenya (CAK) to set out minimum standards for complaint resolution, transparency in digital-wallet pricing and clear pathways for consumers to claim refunds. The framework is expected to be finalised by end of 2026.
While the announcement offers hope for consumers, some industry players are sceptical about implementation. Digital-wallet providers warn that creating a compensation fund may increase costs for users. Meanwhile, consumer-rights advocates say many victims still struggle with delays and denials when seeking redress. One recent court case found that a customer was owed KSh 450,726 after a bank was held negligent in investigating fraud, suggesting that legal precedents for redress are growing.
In earlier remarks, Law Society of Kenya (LSK) President Faith Odhiambo reaffirmed her commitment to defending public interests, saying, “As I take up this responsibility, let it be known that I have in no way betrayed your trust.” Her comment underscores growing pressure on regulators and the legal fraternity to ensure accountability and fairness in Kenya’s expanding digital-finance landscape.
As the digital-wallet market continues to expand across Kenya, the new CBK proposals mark a step toward building trust and safeguarding consumers. The key will be whether the guidelines translate into faster refunds, clearer procedures, and a reduction in unresolved complaints, something the regulator says it will measure via key performance indicators.
