The Central Bank of Kenya (CBK) has licenced an additional 27 Digital Credit Providers (DCPs), bringing the total of licenced DCPs to 85.

In a statement on Tuesday, October 1, 2024, CBK revealed that it has received more than 730 DCP applications since March 2022.

“The Central Bank of Kenya (CBK) announces the licensing of an additional 27 Digital Credit Providers (DCPs). This is pursuant to Section 59(2) of the Central Bank of Kenya Act (CBK Act). This brings the number of licensed DCPs to 85 following the last licensing of 7 DCPs as announced in June 2024,” CBK revealed.

“CBK has received more than 730 DCP 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 says that other applicants are at different stages in the process, largely awaiting the submission of requisite documentation.

“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 DCPs customers are safeguarded. We acknowledge the efforts of the applicants and the support of other regulators and agencies in this process,” CBK added.

“We urge the remaining applicants to submit the pending documentation to enable completion of the review of their applications.”

The licensing and oversight of DCPs were 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.

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