The Central Bank of Kenya (CBK) has licensed an additional 41 Digital Credit Providers (DCPs).
DCPs are non-deposit-taking financial institutions that offer short-term loans through digital platforms such as the internet, mobile apps, or online platforms.
Through a press release on Thursday, June 5, CBK revealed that the approval of the new DCPs brought the number of licensed DCPs to 126. Another 27 were licensed in October last year.
As per the chief regulator, the approval of the new DCPs came after a rigorous process involving the DCPs, other regulators and agencies pertinent to the licensing process, including the Office of the Data Protection Commissioner.
“The focus of the engagements has been inter alia on business models, consumer protection, and fitness and propriety of proposed shareholders, directors, and management,” CBK noted.
“This is to ensure adherence to the relevant laws and, importantly, that the interests of customers are safeguarded,” they added.
DCPs typically use alternative data like mobile phone usage, social media activity, and digital transaction histories to assess a borrower's creditworthiness.
Compared to banks, which are heavily regulated under banking laws and central bank frameworks, DCPs are licensed by specific regulators such as the CBK under DCP guidelines.
They also have a very short processing time, with users able to access loans within short periods, typically giving out smaller loans with shorter repayment windows.
Also, their target market differs when compared to banks, as DCPs mostly target unbanked, youth, informal workers, and small traders. Banks on the other hand, seek salaried individuals, businesses, individuals with financial history.
The approved DCPs include Absolute Credit Kenya Ltd, Adroit Credit Limited, Asap Credit Limited, Aventus Technology Limited, Avenews Ke Limited and AVL Capital Limited.
Others are Bimas Kenya Limited, BRAC Kenya Company Limited, East African Futures Company Limited, Fabilo Credit Limited, Fantom Capital Limited, and Finberry Capital Limited.
The list is further comprised of Finboom Credit Kenya Limited, Frictionless Enterprises Limited, Girls First Kenya Limited, Granary Capital Limited, Helium Credit Limited and Kifedha Limited.
Kikwetu Credit Limited, Leja Limited, Loan Plus Limited, Longitude Capital Limited, Maxxton Enterprise Limited, and Milhan Access Capital Limited also make up the list of newly-approved DCPs.
Also, Mkulima Pay Limited, Modesty Credit Limited, Moneza Limited, Nawiri African Sprouts Limited (trading as Fast Credit), Newark Frontier Limited, and Numida Technologies Limited make up the list.
The list also includes Simbageld Limited, Sipranda Capital Limited, Spectrum Capital Limited, Spread Capital Limited, Steadfast Credit Limited, and Tentacorp Holdings Limited.
Tinycost Credit Kenya Limited, Unifi Credit Limited, Wabema Credit Limited, Watu Credit Limited, and Zamaradi Capital Credit round off the list of new DCPs.
