The Central Bank of Kenya (CBK) on Monday, September 19, published a list of approved Digital Credit Providers - DCPs who had applied for a license.
In a statement, CBK noted that ten mobile lenders had so far been approved out of the 288 applications that had been filed since March 2022.
CBK however, noted that other applicants would be added in due course as they are at different stages of the approval process.
"CBK has received 288 applications since March 2022 and has worked closely with the applicants over the last six months in reviewing their applications.
Additionally, CBK has engaged other regulators and agencies pertinent to the licensing process, including the Office of the Data Protection Commissioner. We acknowledge the efforts of the applicants and the support of other regulators and agencies in this process."
The list includes Ceres Tech Limited, Getcash Capital Limited, Giando Africa Limited (Trading as Flash Credit Africa), Jijenge Credit Limited, Kweli Smart Solutions Limited, Mwanzo Credit Limited.
Others include MyWagepay Limited, Rewot Ciro Limited, Sevi Innovation Limited and Sokohela Limited.
"We urge these applicants to submit the pending documentation expeditiously to enable completion of the review of their applications. "
The regulator however issued a warning to the unregulated DCPs who did not apply for licensing to desist from conducting digital credit business. The transition period for all unregulated DCPS to apply for a license ended on September 17, 2022.
"This is pursuant to Section 59(2) of the Central Bank of Kenya Act (CBK Act), that required all operating unregulated DCPs to apply to CBK for a license within six months of the publication of the Central Bank of Kenya (Digital Credit Providers) Regulations, 2022 (the Regulations), i.e., by September 17, 2022, or cease operations."
CBK noted that the regulation was vital due to the concerns raised by the public about the mushrooming DCPs in the country.
"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, and in particular, their high cost, unethical debt collection practices, and the abuse of personal information."