The Central Bank of Kenya (CBK) has licensed seven more Digital Credit Providers (DCPs) to operate in the country, bringing the total number of authorised digital loan providers to 58 as of March 2024.
CBK said in a statement that since March 2022, it has received 550 applications and has worked closely with other regulators and agencies responsible for licensing, 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,” CBK said.
The regulator said licensing and oversight of DCPs was informed by concerns from the public about predatory practices of some unregulated players that were not only riding on unethical debt collection practices, high interest rates, and abuse of personal information.
Additionally, it added, other applicants are at different stages of the process, 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,” CBK said. – By Barbara Owano Lubukha and Hildah Wanjiku
