The Central Bank of Kenya (CBK) has issued operating licenses to 7 new Digital Credit Providers (DCPs). This now brings the total number of licensed DCPs in Kenya to 58.
The new credit providers licensed are UbaPesa, Stride Credit, Senti Capital, Progressive Credit, Payablu Credit, Mogo Auto and Mint Credit.
CBK says it has 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, ” it says in a statement.
Last year, digital lenders had raised concerns over delays in obtaining operational licences from the regulator. All digital lenders were supposed to seek fresh licensing, as per CBK (Digital Credit Providers) Regulations, 2022.
CBK says it has received more than 550 applications since the process began in March 2022.
In March this year, CBK also issued permits to 19 digital credit players including Lipa Later, and Zillions Credit.
According to the latest data from the Competition Authority of Kenya Safaricom and NCBA Bank-owned Fuliza and M-Shwari, command 59 per cent of the digital credit market share in the digital lending segment in Kenya, KCB’s Mpesa is third with 15 per cent, Tala 13 per cent and while Branch 9 per cent.
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