The Central Bank of Kenya (CBK) has licensed an additional 19 Digital Credit Providers (DCPs). This brings the total number of dully licensed DCPs to 51 following the licensing of 32 DCPs announced in March 2023.
CBK has received 480 applications since March 2022 and has worked closely with the applicants in reviewing their applications.
Additionally, 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.
“This is to ensure adherence to the relevant laws and importantly that the interests of customers are safeguarded. We acknowledge the efforts of the applicants and the support of other regulators and agencies in this process,” the Central Bank of Kenya said in a statement.
The CBK says other applicants are at different stages in the process, largely 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,” says the CBK.
The banking regulator says the licensing and oversight of DCPs, was precipitated by concerns by the public about the predatory practices of the unregulated DCPs, and in particular, their high cost, unethical debt collection practices, and the abuse of personal information.