The Central Bank of Kenya (CBK) has licensed 12 Digital Credit Providers (DCPs), bringing the number of licensed DCPs to 22 following the licensing of 10 DCPs announced in September 2022.
The licensed Digital Credit Providers included Inventure Mobile Limited (Trading as Tala), Letshego Kenya Ltd, MFS Technologies Limited, Letshego Kenya Ltd, Natal Tech Company Limited, Ngao Credit Limited, Pezesha Africa Limited, Sevi Innovation Limited, Tenakata Enterprises Limited, Umoja Fanisi Limited and Zanifu Limited.
CBK said that the additional DCPs will allow the safeguarding of customers’ interests and improve customer protection engagements.
“The focus of the engagements has been inter alia on business models, consumer protection and fitness and propriety of proposed shareholders, directors, and management,” read the statement from CBK.
“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.”
CBK received 381 applications since March 2022 and worked closely with the applicants in reviewing their applications.
Additionally, CBK engaged other regulators and agencies pertinent to the licensing process, including the Office of the Data Protection Commissioner.
Meanwhile, other applicants seeking operational approval have been urged to submit the pending documentation to complete the review of their applications.
The focus of the engagements was on business models, consumer protection and the fitness and propriety of proposed shareholders, directors, and management. This ensured adherence to the relevant laws and that customers’ interests were safeguarded.
The licensing and oversight of DCPs, as indicated previously, were precipitated by concerns raised by the public about the predatory practices of the unregulated DCPs, and in particular, their high cost, unethical debt collection practices, and the abuse of personal information.
