There are now 22 licensed Digital Credit Providers thanks to the inclusion of another 12 by the Central Bank of Kenya.
The CBK claims that licensing adheres to Section 59(2) of the Central Bank of Kenya Act (CBK Act). Since March 2022, 381 applications have been submitted, according to the CBK.
These companies are among the licensed DCPs: Ceres Tech Limited, Getcash Capital Limited, Giando Africa Limited, Jijenge Credit Limited, Kweli Smart Solutions Limited, Inventure Mobile Limited, Jumo Kenya Limited, Letshego Kenya Ltd, MFS Technologies Limited, M-Kopa Loan Kenya Limited, and Mwanzo Credit Limited.
Along with My Credit Limited, My Wagepay Limited, Natal Tech Company Limited, Ngao Credit Limited, Pezesha Africa Limited, Rewot Ciro Limited, Sevi Innovation Limited, Sokohela Limited, Tenakata Enterprises Limited, Umoja Fanisi Limited, and Zanifu Limited, these companies were also approved.
The licencing and oversight of DCPs were entailed by concerns raised by Kenyans over the fraud schemes of unregulated digital lenders.
The lenders had been charged with exorbitant repayment costs, dishonest debt collection methods, and misuse of personal data. The Office of the Data Protection Commissioner, among other regulators and agencies, was reportedly involved in the licensing procedure, according to the CBK.
According to CBK, “the engagements have focused on business concepts, consumer protection, and the appropriateness and fitness of proposed shareholders, directors, and management.” This is done to make sure that the laws are followed and, more significantly, to protect the interests of the customers.