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The Central Bank of Kenya (Amendment) Act 2021, that will allow the CBK to license and supervise digital lenders has come into effect following the Presidential assent on December 7, 2021.
“The Amendment provides the Central Bank of Kenya with the powers to license and oversight the previously unregulated digital credit providers,” CBK said in a statement.
The Amendment requires CBK to publish Regulations within three months and accordingly CBK has announced the issuance of draft Digital Credit Providers Regulations and has invited public comments on the same.
“The Regulations provide for inter alia the licensing, governance, and credit operations of Digital Credit Providers (DCPs), they further provide for consumer protection, credit information sharing, and elaborate on the Anti-Money Laundering and Combating the Financing of Terrorism (AML/CFT) obligations of DCPs,” CBK said.
Additionally, in order to facilitate an orderly transition to a regulated environment, the regulator has urged all unregulated DCPs to submit their business details by January 21, 2022.
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