Central Bank of Kenya Issues Licenses to Seven New Digital Credit Providers, Raising Total to 58

The Central Bank of Kenya (CBK) has issued operating licenses to seven new Digital Credit Providers (DCPs). This recent addition raises the total number of licensed DCPs in Kenya to 58, following the issuance of 19 licenses in May. The newly licensed credit providers in June include:

1. UbaPesa Limited
2. Stride Credit Limited
3. Senti Capital Limited
4. Progressive Credit Limited
5. Payablu Credit Limited
6. Mogo Auto Limited
7. Mint Credit Limited

Part of CBK statement reads,

“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,“.

The digital credit sector in Kenya, heavily reliant on mobile loan applications, has been expanding. An amendment to the Central Bank of Kenya Act (CBK Act) in 2021 allowed these loan service providers to be licensed under Section 59(2).

This legislative change was aimed at regulating the DCPs and establishing standardized operating procedures following public concerns about the unfair practices of unregulated providers. Data privacy issues were a significant factor in pushing for the 2021 amendment, as mobile loan providers had been criticized for aggressive loan recovery tactics. Since March 2022, the CBK has received over 550 applications and has collaborated with applicants to review their submissions.