As of June 1, 2026, Kazakhstan’s financial market comprised 211 microfinance institutions (MFIs) and 205 debt collection agencies.
The microfinance sector has undergone a profound transformation in recent years. The rapid expansion of digital financial services and online lending has made credit significantly more accessible. At the same time, the surge in digital lending has increased debt burdens for some borrowers and led to a wider use of unfair practices in both microloan issuance and debt collection.
Against this backdrop, the Agency has pursued a consistent regulatory reform agenda aimed at reducing household indebtedness, curbing abusive market practices, strengthening the financial resilience of market participants, and improving consumer protection.
First. Strengthening the resilience of microfinance institutions and embedding responsible lending principles.
The primary objective has been to improve the financial stability of MFIs while limiting the riskiest consumer lending models.
To achieve this, the Agency strengthened prudential requirements for microfinance institutions. The minimum charter capital was doubled from KZT 100 million to KZT 200 million. Risk-weighted asset requirements were introduced for capital adequacy calculations, while a maximum ratio for non-performing microloans (NPL 90+) was established at 20% before being tightened to 10%.
Requirements governing microloan issuance have also been fundamentally revised. The special regulatory regime for payday loans (PDLs) has been abolished, with a single cap on the annual percentage rate (APR) now applying across the sector: no more than 179% per year and 0.3% per day, replacing the previous daily limit of 1%. A new legal category of consumer microloans has been introduced together with a maximum loan size. Unsecured loans with maturities exceeding five years have been prohibited. Additional safeguards have also been imposed on fully remote online lending, including a mandatory 24-hour cooling-off period after a loan agreement is signed.
Particular emphasis has been placed on preventing excessive household indebtedness. The Agency has gradually introduced restrictions on issuing new microloans to borrowers with overdue bank loans or existing MFI debt, as well as to individuals whose debts had been written off within the previous three years.
In addition, to prevent the mass transfer of distressed retail debt to collection agencies, a moratorium on assigning individuals’ debt claims was introduced and subsequently extended until May 1, 2027.
Second. Reforming debt collection regulation and strengthening borrower protection.
The second pillar of the reform focuses on increasing the accountability of collection agencies and eliminating abusive debt collection practices.
Regulatory requirements for collection agencies have been substantially tightened. Fit-and-proper standards for senior management have been strengthened. Collection agencies are now prohibited from being affiliated with financial institutions or other collection agencies. Employees are no longer allowed to work simultaneously for multiple agencies, while the grounds for removing agencies from the official register have been expanded.
To reduce conflicts of interest, collection agencies are prohibited from interacting with affiliated notaries or private enforcement officers. At the same time, agencies are now required to conduct debt restructuring procedures for acquired retail claims before initiating enforcement actions.
To reinforce accountability across the sector, administrative fines have been doubled. Personal administrative and criminal liability has also been introduced for collection agency employees who abuse or exceed their legal authority.
Third. Moving to a tougher supervisory model for the microfinance and debt collection market.
Regulatory reforms have been accompanied by a significant strengthening of the Agency’s supervisory framework.
Since 2023, the Agency has conducted 824 inspections, imposed 310 supervisory measures, and issued 2,010 administrative fines totaling KZT 693.4 million. As a result of repeated legal violations, licenses of 99 microfinance institutions have been revoked, licenses of another 29 MFIs have been suspended, and 47 collection agencies have been removed from the official register.
The most common violations include issuing microloans without properly calculating borrowers’ debt service ratios or exceeding regulatory debt burden limits, breaching APR caps, extending loans despite legal lending restrictions, submitting inaccurate reports and credit bureau data, and violating rules governing interactions with borrowers.
At the same time, supervisory activity has focused not only on enforcement but also on restoring borrowers’ rights. In 2025, MFIs and collection agencies fully or partially wrote off principal, interest, penalties, and late fees for 33,900 borrowers, while debts owed by 722,000 borrowers were restructured.
Fourth. Building a modern regulatory framework for microfinance institutions.
The next stage of reform is reflected in Kazakhstan’s new Banking Law. For the first time, microfinance institutions will be required to implement risk management and internal control systems broadly aligned with the baseline standards applied to banks.
The legislation also establishes a formal self-regulatory framework under which self-regulatory organizations will participate in developing common industry standards, monitoring compliance, reviewing consumer complaints, and raising professional standards across the sector.
These reforms mark a shift away from regulating individual requirements toward building a comprehensive framework of corporate governance, risk management, and internal controls designed to ensure the long-term financial resilience of microfinance institutions and improve the quality of financial services they provide.
As a result, Kazakhstan has established a comprehensive regulatory and supervisory framework for the microfinance and debt collection market over the past several years. It now covers every key element of regulation, including market entry requirements, financial resilience, corporate governance, responsible lending standards, debt restructuring and collection procedures, and risk-based supervision. Together, these reforms are intended to support the sustainable development of the microfinance sector while providing stronger protection for consumers of financial services.
This article was translated with the assistance of artificial intelligence.
