Draft regulations from Kenyan financial regulators, including the Central Bank of Kenya (CBK) and the Sacco regulator, will mandate that banks and digital lenders reassess borrowers' financial capacity before increasing loan limits, aiming to combat predatory lending and rising debt. Currently, loan limit increases are often based solely on repayment history, neglecting a borrower's ability to service new facilities. These new rules require lenders to evaluate income, expenses, and assets to ensure borrowers can repay without hardship and that loans meet their stated needs. This initiative follows concerns over over-indebtedness, with 16.6 percent of borrowers over-indebted as of September last year, and the regulator aims to reduce this by 30 percent in three years. The regulations also include provisions for lenders to assist distressed borrowers by offering repayment holidays and restructuring loans.