After a long wait, CBK approves 12 more digital lenders
Hundreds of digital credit providers (DCPs) are yet to know their fate nearly a year after they filed their application for licenses to the Central Bank of Kenya in March 2022.
In its latest update, Central Bank has licensed 12 digital credit providers, bringing to 22 the total number of licensed companies following the licensing of 10 DCPs in September, last year.
“Other applicants are at different stages in the process, largely awaiting the submission of requisite documentation. We urge these applicants to submit the pending documentation expeditiously,” said the CBK.
In March last year, the banking sector regulator received applications from 381 DCPs seeking permits.
The move to start vetting and licensing DCPs followed public outcry on exploitative loan recovery measures, sky-high interest rates, and claims of money laundering among others, which saw the CBK Governor Dr Patrick Njoroge term the players in the industry “exploitative and crazy.”
“CBK has engaged other regulators and agencies pertinent to the licensing process, including the Office of the Data Protection Commissioner,” the banking sector watchdog explained, throwing a pointer on why the process seems to take months.
The focus of the scrutiny of the applicants has been among others on their credit business models besides the array of consumer protection measures that have been put in place.
The Central Bank has also been scrutinising the fitness and propriety capacity of the DCPs leadership structure including the proposed shareholders, directors, and their management.
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“This is to ensure adherence to the relevant laws and importantly that the interests of customers are safeguarded. We acknowledge the efforts of the applicants and the support of other regulators and agencies in this process,” noted CBK in an update.
Some of the firms that have received licences in the latest installment are: Inventure Mobile Limited (Trading as Tala), Kweli Smart Solutions Limited, Jijenge Credit Limited, Giando Africa Limited (Trading as Flash Credit Africa), Getcash Capital Limited as well as Ceres Tech Limited.
The CBK has also licensed Jumo Kenya Limited, Letshego Kenya Ltd, MFS Technologies Limited, M-Kopa Loan Kenya Limited, Mwanzo Credit Limited, Mycredit Limited, and MyWagepay Limited.
Natal Tech Company Limited, Ngao Credit Limited, Pezesha Africa Limited, Rewot Ciro Limited, Sevi Innovation Limited, Sokohela Limited, Tenakata Enterprises Limited, Umoja Fanisi Limited, and Zanifu Limited have all been permitted to provide digital credit services.
