The Central Bank of Kenya (CBK) has licensed 19 more digital credit providers (DCPs), bringing the total number of regulated DCPs to 51.
The move is part of CBK’s efforts to curb the predatory practices of unregulated DCPs, such as high interest rates, unethical debt collection, and misuse of personal data.
Some of the new DCPs include Autochek, Azura, Chapeo, Chime, Creditarea, Decimal, Dexintec, Fortune, Lobelitec, Maralal, Marble, MKM, UbaPesa, Senti, and Zillions.
CBK said it had received 480 applications from DCPs since March 2022 and had worked closely with the applicants in reviewing their applications.
“Additionally, CBK has engaged other regulators and agencies pertinent to the licensing process, including the Office of the Data Protection Commissioner. 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,” the press release stated.
CBK also acknowledged the efforts of the applicants and the support of other regulators and agencies in the process.
CBK urged the remaining applicants who are at different stages in the process to submit the pending documentation expeditiously to enable completion of the review of their applications.
The licensing and oversight of DCPs was initiated by CBK in response to the concerns raised by the public about the unregulated DCPs, which had proliferated in the Kenyan market in recent years.
CBK said it was committed to ensuring that the digital credit sector operates in a safe and sound manner, and that the customers are protected from exploitation and abuse.
