The Central Bank of Kenya (CBK), on Friday, March 17, listed 12 new Digital Credit Providers - DCPs licensed to operate in the country.
In a notice by CBK Governor Patrick Njoroge, M-Kopa Money Kenya Limited, Mycredit Limited, and Tenataka Enterprises Limited were listed as the new entrants to the digital credit market.
Inventure Mobile Limited (Tala), Jumo Kenya Limited, Letshego Kenya Limited, MFS Technologies Limited and Umoja Fanisi Limited were also approved.
CBK further listed Natal Tech Company Limited, Ngao Credit Limited, Pezesha Africa Limited, Umoja Fanisi Limited, and Zanifu Limited as new entrants.
CBK noted that the licences took effect from the date of gazettement.
"It is notified for information of the general public that in the exercise of the powers conferred by Regulation 5 (1) of the Central Bank of Kenya (Digital Credit Providers) Regulations, 2022," read the notice in part.
According to the 2022 regulations, licenced operators cease operation once their licences are cancelled or revoked by CBK.
"The Bank may grant a licence to an applicant who meets the requirements of these Regulations subject to such conditions as the Bank may consider necessary, which may be varied from time to time.
"CBK shall publish the name of every licensed digital credit provider in the Gazette and in the Bank’s website within thirty days of the grant of a licence," reads the regulations in part.
Licensed operators are also required to pay an annual fee of Ksh20,000. Application for a licence costs Ksh5,000.
According to data from the Digital Lenders Association, 66 per cent of urban dwellers take loans from digital credit providers.
"35 per cent of Kenyan digital borrowers use digital credit to meet day-to-day household needs while 37 per cent borrow for business," read the report in part.
On Monday, January 30, CBK also approved 12 other approved Digital Credit Providers - DCPs out of the 381 that had applied then.
However, all digital lenders, later on, protested a directive by President William Ruto which they argued affected their operations.
Ruto directed Hustler Fund's limit for Small and Medium Enterprises (SMEs) to be increased in the second phase. According to the lenders, extending and increasing the limits for players would destabilise their bottom line.
"The directive will impact the customers that we serve," one of the managers of the digital lending platforms complained.
