The Central Bank of Kenya has announced the licensing of an additional seven Digital Credit Providers (DPCs).
CBK says the move is pursuant to Section 59(2) of the Central Bank of Kenya Act.
This brings the number of licensed DCPs to 58 following the licensing of 19 DCPs announced in March 2024.
In a statement, CBK says it has received more than 550 applications since March 2022 and has worked closely with the applicants in reviewing their applications.
“The focus of the engagement has been inter alia on business models, consumer protection and fitness and propriety of proposed shareholders, directors and management.” The statement read.
Adding that: “This is to ensure adherence to the relevant laws and importantly that the interests of consumers are safeguarded.”
While acknowledging the efforts of the applicants and support of other regulators and agencies in the process, CBK noted that other applicants are at different stages in the process, largely waiting for the submission of requisite documentation.
“We urge these applicants to submit the pending documentation expeditiously to enable completion of the review of their applications.”
The public has been urged to send reports on unregulated DCPs through dcps@centralbank.go.ke.
The licensing and oversight of the DCPs was precipitated by concerns raised by the public about predatory practices of the unregulated DCPs, and particularly, their high cost, unethical debt collection practices and the abuse of personal information.
