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The Central Bank of Kenya (CBK) has awarded licenses to 19 additional digital credit providers (DCP), bringing the total count of registered companies to 51.
In an announcement on Wednesday, the CBK revealed that it had received a total of 480 licensing applications as of March 2023, marking the latest step in the licensing process to adhere to Section 59(2) of the CBK Act.
The Apex Bank reiterated its dedication to ensuring compliance with relevant laws and safeguarding customers’ interests throughout the licensing procedure. Furthermore, it noted collaborative efforts with other regulatory bodies and agencies, including the Office of Data Protection Commissioner, to uphold adherence to applicable regulations.
The CBK stated,
“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 several other applicants were at various stages in the licensing process, with many awaiting the submission of required documentation.
Here is the complete list of the newly registered companies: 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 aligns with regulations introduced last year to eliminate unscrupulous players in the lending industry and regulate the use of consumer data by lenders.
This regulatory action followed revelations that some companies were reaching out to family and friends of customers who defaulted on payments or failed to pay on time. In response to reports of customer data misuse and excessively high loan interest rates, the CBK mandated that all DCPs obtain licenses to operate by 2022, enhancing regulatory control over Kenya’s financial sector.
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