The Central Bank of Kenya (CBK) has licensed additional 19 additional Digital Credit Providers (DCPs) bringing the total number to 51.
According to a statement by the CBK, licensing is in line with Section 59(2) of the Central Bank of Kenya Act (CBK Act).
Additionally, CBK stated that it has received 480 applications since March 2022 and was working with applicants, the Office of the Data Protection Commissioner and other regulators through the licensing process.
The regulations provide consumer protection, credit information sharing, and outline the Anti-Money Laundering and Combating the Financing of Terrorism.
“The focus of the engagements has been inter alia on business models, consumer protection and fitness and propriety of proposed shareholders, directors, and management.
“This is to ensure adherence to the relevant laws and importantly that the interests of customers are safeguarded. We acknowledge the efforts of the applicants and the support of other regulators and agencies in this process,” indicated a statement by CBK.
Also Read: CBK Governor Explains Reason Banks Reintroduced Mobile Bank Charges
CBK List of Credit Providers
Some of the credit providers on the list now include Anjoy Credit Limited, Asante FS East Africa Limited, Autochek Limited, Azura Credit Limited, Ceres Tech Limited, Getcash Capital Limited and Chapeo Capital Limited.
Further, CBK approved Chime Capital Limited, Colkos Enterprises Limited, Creditarea Capital Limited, Decimal Capital Limited, Dexintec Kenya Limited, EDOMX Limited, Extend Money Services Limited, Factorhouse Limited, Fezotech Kenya Limited, Fortune Credit Limited and Fourth Generation Capital Limited.
Also, on the list is Giando Africa Limited (Trading as Flash Credit Africa), Inventure Mobile Limited (Trading as Tala), Jijenge Credit Limited, Jumo Kenya Limited, Kweli Smart Solutions Limited, Letshego Kenya Ltd, Lipa Later Limited, Little Pesa Limited among others.
In addition, CBK said that the move was meant to ensure that the creditors adhered to relevant laws and the interests of the customers were safeguarded.
Also Read: CBK Approves 10 More Digital Credit Providers
“Other applicants are at different stages in the process, largely awaiting the submission of requisite documentation.
“We urge these applicants to submit the pending documentation expeditiously to enable completion of the review of their applications,” added the regulator.
Concerns Raised over Increasing Unregulated Digital Lenders.
According to CBK, the licensing process began following reports of unethical debt collection practices, and the abuse of personal information by the credit providers.
“The Regulations seek to address concerns raised by the public given the recent significant growth of digital lending particularly through mobile phones.
“These concerns relate to the predatory practices of the previously unregulated digital credit providers, and in particular, their high cost, unethical debt collection practices, and the abuse of personal information,” CBK announced in March 2022.
