The Central Bank of Kenya (CBK) on Wednesday, March 6, 2024, announced the licensing of an additional 19 Digital Credit Providers (DCPs).
In a statement to newsrooms, CBK said the announcement was under Section 59(2) of the Central Bank of Kenya Act (CBK Act).
The additional licensing brings the number of licensed DCPs to 51 following the licensing of 32 DCPs announced in March 2023.
Further, CBK has said it 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 aliaon business models, consumer protection and fitness and propriety of proposed shareholders, directors, and management,” noted CBK.
“This is to ensure adherence to the relevant laws and importantly that the interests of customers are safeguarded,” it added.
Other applications awaiting documentation
The regulator noted that it acknowledge the efforts of the applicants and the support of other regulators and agencies in this process.
“Other applicants are at different stages in the process, largely awaiting the submission of requisite documentation,” CBK said.
This is even as it called on applicants to submit the pending documentation expeditiously to enable completion of the review of their applications.
The licensing and oversight of DCPs as indicated previously, 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.
Check out the list of 51 licenced Digital Credit Providers as of March 2024.
