The Central Bank of Kenya (CBK) has granted operating licenses to 7 new Digital Credit Providers (DCPs). This latest batch of loan companies brings the total number of licensed DCPs in Kenya to 58. It’s a smaller number compared to the 19 that received operating licenses in May. Mogo Auto is one of the new DCPs after securing USA government funding.
The new credit providers licensed in June are:
- UbaPesa Limited
- Stride Credit Limited
- Senti Capital Limited
- Progressive Credit Limited
- Payablu Credit Limited
- Mogo Auto Limited
- Mint Credit Limited
Read: List of Licensed Digital Lenders in Kenya May 2024
Digital credit has been a growing sector in Kenya with a strong reliance on Mobile loan apps. An amendment bill in 2021 enabled the loan service providers to be licensed under Section 59(2) of the Central Bank of Kenya Act (CBK Act).
The amendment was done to reign in the DCPs and lay down operating procedures. Public outcry over the unfair practices of unregulated DCPs led to the current system of licensing and oversight. Part of the push towards the 2021 amendment bill was data privacy concerns. Mobile loan providers in Kenya had been deemed overreaching in their loan recovery attempts.
“CBK has engaged 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, ” reads part of CBK’s statement.
Read : Understanding Genuine Mobile Loan Apps in Kenya – Part 2
According to CBK, the regulator has received more than 550 applications since March 2022 and has worked closely with the applicants in reviewing their applications.
This sector that relies majorly on Mobile apps and USSD menus is set to grow. CBK indicates that there are other applicants at different stages in the process, largely awaiting the submission of requisite documentation.
