The Central Bank of Kenya (CBK) has licensed an additional 27 Digital Credit Providers (DCPs) per Section 59(2) of the CBK Act.
This brings the number of licensed DCPs to 85 following the last licensing of 7 DCPs, as announced in June 2024.
In a statement, CBK stated that it has received more than 730 DCP applications since March 2022.
“We have worked closely with the applicants in reviewing their applications,” CBK said.
As indicated previously, the licensing and oversight of DCPs were precipitated by concerns raised by the public about the predatory practices of unregulated DCPs.
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The public was also concerned about the DCPs' high cost, unethical debt collection practices, and abuse of personal information.
Further, the Regulator 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 among business models and consumer protection.”
In addition, the fitness and propriety of proposed shareholders, directors, and management are inclusive.
“This is to ensure adherence to the relevant laws and importantly that the interests of DCPs customers are safeguarded.”
Similarly, it has acknowledged the applicants' efforts and the support of other regulators and agencies in this process.
Details of the 85 licensed DCPs can be accessed on their website.
