NAIROBI, Kenya– Central Bank of Kenya (CBK) has licensed 41 additional Digital Credit Providers (DCPs), pushing the total number of licensed operators in the country to 126.
CBK in a statement asserted that this latest move marks another significant milestone in the ongoing effort to regulate Kenya’s digital lending space and protect consumers from predatory practices.
According to CBK, the licensing is in line with Section 59(2) of the Central Bank of Kenya Act.
Since the application process opened in March 2022, CBK has received over 700 applications and continues to work closely with applicants to ensure compliance with regulatory standards.
“Our engagements have focused on business models, consumer protection, and the fitness and propriety of shareholders, directors, and management,” said CBK.
“This is to ensure adherence to relevant laws and, importantly, that the interests of customers are safeguarded.”
The roll out has been done in collaboration with other regulators, including the Office of the Data Protection Commissioner that aided in the vetting process. The licensing regime was introduced in response to growing public concern about some digital lenders’ unethical debt collection methods, high fees, and misuse of personal data.
