The first list of Digital Credit Providers that are sanctioned by the Central Bank of Kenya (CBK) to operate in the country is replete with unfamiliar names after household names such as Branch and Tala failed to make the cut.
The banking industry regulator on Monday published 10 mobile lenders that successfully applied for a fresh license to operate in the country from an initial roll of 288 applicants.
The approved DCPs are Ceres Tech Limited, Getcash Capital Limited, Glando Africa Limited, Jijenge Credit Limited, Kweli Smart Solutions Limited Mwanzo Credit Limited, MyWagepay Limited, Rewot Ciro Limited, Sevi Innovation Limited and Sokhela Limited.
However, the CBK clarified that other applicants are still being vetted to ascertain their compliance with the Central Bank of Kenya (Digital Credit Providers) Regulations, 2022.
“Other applicants are at different stages in this process, largely awaiting the submission of requisite documentation,” said CBK in a statement.
The new regulations informing the move to license digital lenders seek to address concerns raised by the public given the recent significant growth of digital lending, particularly through mobile phones.
These concerns relate to the predatory practices of the previously unregulated digital credit providers, and in particular, their high cost, unethical debt collection practices, and the abuse of personal information.
They also provide for consumer protection, credit information sharing, and outline the Anti-Money Laundering and Combating the Financing of Terrorism obligations of DCPs.