KENYA—The Central Bank of Kenya (CBK) has licensed seven additional Digital Credit Providers (DCPs), bringing the total to 58.
The seven additional licensed digital lenders include ED Partners Africa Limited, Ismuk Credit Limited, Mint Credit Limited, Mogo Auto Limited, Payablu Credit Limited, Progressive Credit Limited, and Stride Credit Limited.
“The Central Bank of Kenya (CBK) announces the licensing of an additional 7 Digital Credit Providers (DCPs). This is pursuant to Section 59(2) of the Central Bank of Kenya Act (CBK Act). This brings the number of licensed DCPs to 58 following the licensing of 19 DCPs announced in March 2024,” read part of the statement from CBK.
The monetary authority intimated that it had received more than 550 applications since March 2022 and was working closely with the applicants in reviewing the applications.
CBK further noted that it engaged other agencies and regulators pertinent to the licensing process, focusing on business models, consumer protection, and the propriety of proposed shareholders, directors, and management.
“This is to ensure adherence to the relevant laws and, importantly, safeguard the customers’ interests. We acknowledge the efforts of the applicants and the support of other regulators and agencies in this process,” CBK remarked.
According to CBK, other applicants are at different stages in the process and largely await the submission of requisite documentation.
“We urge these applicants to submit the pending documentation expeditiously to enable completion of the review of their applications,” CBK stated.
The Central Bank of Kenya’s (CBK) ongoing efforts to license Digital Credit Providers (DCPs) clearly indicate the regulator’s commitment to establishing a well-regulated, consumer-friendly digital lending environment.
The fact that some applicants are still in various stages of the licensing process and must submit additional documentation suggests that the CBK maintains a thorough and diligent review process to ensure that only those who meet the set standards are granted licenses.
The CBK’s openness to public reporting of unregulated DCPs demonstrates its proactive stance in protecting consumers from potential malpractices by unlicensed entities.
This is particularly important given the history of public concerns regarding the operations of unregulated DCPs, which have been associated with high costs, unethical debt collection practices, and misuse of personal information.
The issues faced in Kenya are not unique to the country; regulators are addressing similar problems in other African nations, such as Tanzania and Nigeria.
These regulators’ actions, including delisting unregistered loan apps and proposing measures to clean up the industry, reflect a broader regional trend towards tighter regulation of digital lending.
Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals and insights from Africa’s business, economy, and more. SUBSCRIBE HERE
