Central Bank of Kenya Grants Licenses to 19 Additional Digital Credit Providers

The Central Bank of Kenya (CBK) has granted licenses to 19 new digital credit providers (DCP), bringing the total number of registered companies to 51.

The CBK disclosed via a notice on Wednesday that it had received 480 licensing applications as of March 2023, the most recent licensing announcement, to comply with Section 59(2) of the CBK Act.

The Apex Bank emphasized its commitment to ensuring compliance with relevant laws and the protection of customers’ interests throughout the licensing process. 

It further disclosed that it collaborated with other regulators and agencies, including the Office of Data Protection Commissioner, to ensure adherence to applicable regulations.

The CBK said in a statement,

“The focus of the engagements has been inter alia on business models, consumer protection ,and fitness and propriety of proposed shareholders, directors, and management”.

The CBK disclosed that other applicants were at different stages in the process, with most awaiting the submission of requisite documentation.

The complete list of the newly registered companies is as follows: Senti Capital, Autocheck, Chapeo, Chime, Creditarea, Decimal, Dexintec, Factorhouse, Fezotech, Fortune, Lipa Later, Lobelitec, Maralal Ledger, Marble Capital, MKM Capital, Pi Capital, Ubapesa, Zillions Credit, and Azura,

The accreditation of these credit providers is part of regulations introduced last year to get rid of rogue players in the lending industry as well as control how lenders use consumer data.

This was after it emerged that some companies were contacting family and friends of customers who defaulted on their payments or failed to pay on time. 

Following reports of customer data abuse and ridiculously high loan interest rates, the CBK mandated that all DCPs obtain licences to operate by 2022 to impose more regulatory control over Kenya’s financial sector.