CBK lists 10 digital credit providers after fresh vetting
The Central Bank of Kenya (CBK) has published a list of 10 approved digital credit providers (DCP) out of the total 288 that applied for a fresh license to operate in the country.
This fresh listing is a culmination of a fresh application for licenses by all DCPs in the country; a process that began in March this year and ended September 17.
The process, CBK said while beginning the transition period for the DCPs, was to ensure that all operating yet unlicensed DCPs applied for a license within six months of the publication of the CBK, Digital Credit Providers regulations, 2022.
“CBK has received 288 applications since March 2022 and is working closely with the applicants over the last six months in reviewing their applications.
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“CBK has engaged other regulators and agencies pursuant to the licensing process, including the Office of the Data Protection Commissioner,” part of the statement issued by the CBK reads.
The ten applicants who have now been listed, according to the CBK Act and the Regulations, include Ceres Tech Limited, Getcash Capital Limited, Glando Africa Limited (Trading as Flash Credit Africa), Jijenge Credit Limited, Kweli Smart Solutions Limited, Mwanzo Credit Limited, MyWagepay Limited, Rewot Ciro Limited, Sevi Innovation Limited and Sokhela Limited.
The CBK, however, has clarified that other applicants will be listed over a non-specified period of time as it continues with the vetting process of the applications filed before it which are at different stages.
“Other applicants are at different stages in this process, largely awaiting the submission of requisite documentation. We urge these applicants to submit the pending documentation expeditiously to enable completion of the review of applications,”
The lapse of the renewal of licenses for all DCPs also sounded the death knell for unregulated DCPs who did not apply for the same before the set deadline.
“All other unregulated DCPs that did not apply for licensing must cease and desist from conducting digital credit business,” the CBK said.
The entire process of fresh licensing came after a public outcry that most of the DCPs were operating illegally and did not abide by the rules set to control the sector.
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The digital lending industry has been regularly accused of its high interest rates, unethical debt collection practices and the abuse of personal information.