Central Bank of Kenya grants licenses to seven new digital credit providers

By Antynet Ford

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

The decision is in accordance with Section 59(2) of the Central Bank of Kenya Act. This brings the total number of licensed DCPs to 58, following the licensing of 19 DCPs that was announced in March 2024.

In an official statement, the CBK mentioned that they have received over 550 applications since March 2022 and have diligently collaborated with the applicants in assessing their submissions.

The focus of this collaboration has revolved around aspects such as business models, consumer protection, and the suitability and integrity of the proposed shareholders, directors, and management personnel.

The primary objective of this process is to ensure compliance with the relevant regulations and, more importantly, to safeguard the interests of consumers.

The statement further emphasized the importance of adherence to the law to protect consumer interests.

While recognizing the dedication of the applicants and the assistance provided by other regulatory bodies and agencies throughout the process, the CBK highlighted that some applicants are currently in various stages of the application process, awaiting the submission of necessary documentation.

The CBK strongly urged these applicants to promptly submit the outstanding documentation to facilitate the completion of the application review.

Members of the public have been encouraged to report any unlicensed DCPs by contacting dcps@centralbank.go.ke.

The decision to license and regulate DCPs was prompted by public concerns regarding the exploitative practices of unlicensed DCPs, particularly their exorbitant costs, unethical debt collection methods, and misuse of personal data.