Central Bank of Kenya licenses 19 more Digital Credit Providers

The Central Bank of Kenya (CBK) has announced the licensing of an additional 19 Digital Credit Providers (DCPs).

This brings the total number of licensed DCPs to 51 following the licensing of 32 DCPs announced in March 2023.

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In a press statement, CBK stated that it received 480 applications since March 2022 and has worked closely with the applicants in reviewing their applications.

Additionally, CBK 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 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 that customers’ interests are safeguarded. We acknowledge the efforts of the applicants and the support of other regulators and agencies in this process,” read part of the statement.

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CBK noted that there are other applicants at different stages in the licensing 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.”

The licensing and oversight of DCPs 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.