Licensed digital Lenders
The Central Bank of Kenya (CBK) has announced the licensing of 41 additional Digital Credit Providers (DCPs), pushing the total number of licensed firms to 126.
This latest round follows the licensing of 27 DCPs in October 2024, and forms part of the regulator’s ongoing efforts to streamline and supervise Kenya’s digital lending sector.
The move is in line with Section 59(2) of the Central Bank of Kenya Act, which mandates CBK to regulate DCPs to safeguard consumer interests. The bank has so far received over 700 applications since the licensing process began in March 2022.
READ Treasury To Overhaul Housing Levy Over Concerns
CBK noted that the evaluation process involved close collaboration with applicants and coordination with other regulatory bodies such as 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,” CBK stated.
The regulatory push comes in the wake of widespread concerns over the conduct of unregulated digital lenders. Consumers had complained about exorbitant interest rates, aggressive debt recovery tactics, and misuse of personal data.
“The licensing and oversight of DCPs, as indicated previously, was precipitated by concerns raised by the public about the predatory practices of the unregulated DCPs,” CBK explained.
CBK emphasized that the licensing process is ongoing, with several other applicants still under review pending the submission of key documentation.
The bank urged those applicants to complete the process without delay.
“We urge these applicants to submit the pending documentation expeditiously to enable completion of the review of their applications,” it said.
Members of the public are encouraged to report any unregulated DCPs via email at dcps@centralbank.go.ke.
The full list of the newly licensed digital lenders can be accessed on CBK’s official website.
