The Central Bank of Kenya (CBK) has granted operating licenses to an additional 12 Digital Credit Providers (DCPs), bringing the total to 22.
In a statement to media houses, the CBK said that more DCPs are at various stages of the process, “largely awaiting the submission of requisite documentation.”
The CBK confirmed it has received 381 applications since March 2022. Last year, the regulator cleared 10 digital lenders, but many more have continued to operate even as the evaluation process continues.
The review of the digital credit market came after several complaints from consumers over the alleged misuse of private data by the lenders.
Among the considerations that the CBK has put in place are the 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 interest of customers is safeguarded. We acknowledge the efforts of the applications and the support of other regulators and agencies in the process,” the CBK said.
The communication over this process comes just days after DCPs claimed that the CBK was delaying issuing operating licenses, leading to huge losses.
Since late last year, Google made it mandatory for loan apps appearing on its Play Store to first acquire licenses from the CBK.
“Digital Credit Providers (DCP) should complete the DCP registration process and obtain a license from the Central Bank of Kenya (CBK). You must provide a copy of your license from the CBK as part of your declaration.” Google said in a statement.
The newly licensed DCPs include; Ceres Tech Limited, Getcash Capital Limited, Giando Africa Limited, Jijenge Credit Limited, Kweli Smart Solutions Limited, Inventure Mobile Limited, Jumo Kenya Limited, Letshego Kenya Ltd, MFS Technologies Limited, M-Kopa Loan Kenya Limited and Mwanzo Credit Limited.
The continued enhancement of regulation in this sector has given consumers a sigh of relief and renewed hope that their data is safeguarded.