The Central Bank of Kenya (CBK) has licensed 12 Digital Credit Providers (DCPs) bringing the number of licensed DCPs to 22 following the licensing of 10 DCPs announced in September 2022.
The 12 are part of the 381 applications CBK received since March 2022 and engaged other regulators and agencies pertinent to the licensing process, including the Office of the Data Protection Commissioner to review the applicants.
Other applicants are at different stages in the process, largely awaiting the submission of requisite documentation. CBK says the reviews looked into their business models, consumer protection and fitness and propriety of proposed shareholders, directors, and management to ensure that the interests of customers are safeguarded.
“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,” according to CBK in a statement.
The licensing was to help CBK have an oversight after concerns raised by Kenyans over the predatory practices of unregulated digital lenders in the country. Most of the lenders had high repayment costs, unethical debt collection practices, and the abuse of personal digital information like Identity Numbers, mobile numbers, PINs, Passport Numbers among others.
The CPs include Ceres Tech, Getcash Capital, Giando Africa (Trading as Flash Credit Africa), Jijenge Credit, Kweli Smart Solutions, Inventure Mobile (Trading as Tala), Jumo Kenya, Letshego Kenya, MFS Technologies, M-Kopa Loan Kenya, Mwanzo Credit, Mycredit, MyWagepay, Natal Tech Company, Ngao Credit, Pezesha Africa, Rewot Ciro, Sevi Innovation, Sokohela, Tenakata Enterprises, Umoja Fanisi and Zanifu.