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The number of Digital Lenders in Kenya has risen to 51 after Central Bank of Kenya (CBK) licensed 19 more firms to offer to offer digital credit services in Kenya. This would intensify competition in already flooded but lucrative industry market.
In a statement released on Wednesday March 6, CBK said the new licensees have been registered in collaboration with other regulatory authorities, including the Office of the Data Protection Commissioner, to ensure compliance with new rules governing the digital lending space.
CBK said that they had received 480 applications since March 2022 and has worked closely with the applicants in reviewing their applications. Additionally, CBK noted that they have 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 importantly that the interests of customers are safeguarded”, statements read in part.
CBK acknowledged the efforts of the applicants and the support of other regulators and agencies in the licensing process.
The new licensing comes nearly a year after the last one, and close to two years since the CBK required mandatory registration of digital credit providers (DCPs), that aimed to rein in the sector, which had become notorious for charging high interest on loans and abusing user personal data.
It is the fourth round of license issuances since the CBK started okaying DCPs in October 2022, after the six-month mandatory registration window expired.
Read: New List Of Licensed Mobile Lenders In Kenya 2023.
The List of the 19 New Digital Lenders in Kenya Approved by CBK in March 2024
- Autochek
- Azura Credit
- Chapeo Capital
- Chime Capital
- Creditarea Capital
- Decimal Capital
- Dexintec Kenya
- Factorhouse
- Fezotech Kenya
- Fortune Credit
- Lipa Later
- Lobelitec Credit
- Maralal Ledger
- Marble Capital Solutions
- MKM Capital
- Pi Capital
- Senti Capital
- UbaPesa
- Zillions Credit
CBK has also called upon other applicants at different stages in the licensing process to submit the pending documentation expeditiously to enable completion of the review of their applications.
The licensing of digital lenders is part of regulations introduced last year to regulate the booming industry, protect consumers against exorbitant interest rates by fraudulent lenders, and control how lenders process consumer data. Sign up with CBK approved loan apps to protect yourself against abuse.
CBK responded to the concerns raised by the public about the predatory practices of the unregulated Digital Lenders and in particular, their high cost, unethical debt collection practices, and the abuse of personal information, and urged the public to report unregulated digital lenders by sending an E-Mail to [email protected]
