NAIROBI, Kenya – The Central Bank of Kenya (CBK) has announced the licensing of seven new Digital Credit Providers (DCPs), further expanding the regulated financial landscape in Kenya.
This move, under Section 59(2) of the Central Bank of Kenya Act, raises the number of licensed DCPs to 58, following the approval of 19 providers in March 2024.
In a statement, the CBK highlighted the rigorous application process that has been in place since March 2022, during which over 550 applications were received.
The CBK has collaborated closely with applicants, as well as with other regulators and agencies, including the Office of the Data Protection Commissioner, to ensure a thorough review process.
“CBK has received more than 550 applications since March 2022 and has worked closely with the applicants in reviewing their applications,” the statement said. “Additionally, CBK has engaged other regulators and agencies pertinent to the licensing process, including the Office of the Data Protection Commissioner.”
The CBK indicated that several other applicants are at various stages of the review process, primarily awaiting the submission of necessary documentation.
“We urge these applicants to submit the pending documentation expeditiously to enable completion of the review of their applications,” the statement urged.
The CBK also encouraged the public to report any unregulated DCPs via email at deps@centralbank.go.ke, emphasizing the importance of public vigilance in identifying predatory practices.
The move to license and regulate DCPs was driven by public outcry over the practices of unregulated digital lenders. Complaints included exorbitant costs, unethical debt collection methods, and the misuse of personal information.
“The licensing and oversight of DCPs were 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,” the CBK statement added.
