Number of licenced digital lenders increases as CBK licences 10 more

Business

Number of licenced digital lenders increases as CBK licences 10 more

Monday 27th March, 2023 10:11 AM| By Francis Muli

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The Central Bank of Kenya (CBK) has announced the licensing of additional 10 Digital Credit Providers (DCPs), popularly known as digital lenders.

This brings the number of licensed DCPs to 32 following the licensing of 22 DCPs announced in January 2023.

“CBK has received 401 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,” CBK said in a statement.

“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.”

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. Reports by the public on unregulated DCPs can be sent through [email protected],” added CBK.

The licensing and oversight of digital lenders was precipitated by concerns raised 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.