The Central Bank of Kenya (CBK) has announced the licensing of an additional 27 Digital Credit Providers (DCPs) in accordance with Section 59(2) of the CBK Act.
According to CBK, this brings the number of licensed DCPs to 85 following the last licensing of 7 DCPs as announced in June 2024.
Through a statement, the bank 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.
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.
The DCPs high cost, unethical debt collection practices, and the abuse of personal information was also a concern by the public.
CBK has also 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,” The statement read.
In addition, 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,” CBK said.
The monetary authority has acknowledged the efforts of the applicants and the support of other regulators and agencies in this process.
Details of the 85 licensed DCPs can be accessed on their website.
Other applicants are at different stages in the process, awaiting the submission of requisite documentation.
“We urge the remaining applicants to submit the pending documentation to enable completion of the review of their applications,” CBK appealed.
CBK has further urged the public to report on unregulated DCPs through dcps@centralbank.go.ke.
