The Kenya Central Bank (CBK) has today Monday issued licenses to 10 digital lenders, popularly known as Digital Credit Providers (DCPs).
Following a new licensing requirement from the regulator, only 10 out of 288 digital lenders have received licenses. Tala and 4G Capital are among the most popular digital credit providers to miss on the initial list of licensed firms.
The central bank has, however, said that the vetting process is ongoing and more digital lenders will be licensed in the coming months. This applies to firms that have met the September 17 application deadline that was set by the CBK.
The CBK had in March published a new set of rules and regulations to govern DCPs through the Digital Credit Providers Regulations 2022. DCPs were given 6 months to send their applications for fresh licensing, and the deadline elapsed on 17th.
“Other applicants are at different stages in this process, largely awaiting the submission of requisite documentation,” the CBK said in a statement.
The list of the 10 digital credit providers that received their licenses include: Ceres Tech Limited, Getcash Capital Limited, Glando Africa Limited (Trading as Flash Credit Africa), Jijenge Credit Limited and Kweli Smart Solutions Limited.
Others include Mwanzo Credit Limited, MyWagepay Limited, Rewot Ciro Limited, Sevi Innovation Limited and Sokhela Limited.
The number of online lenders have increased recently as a result of an increasing appetite for small-scale borrowing in the country. Digital lenders are particularly attractive to low-income households due to their ease of access.
Under the new regulations, the CBK requires DCPs to provide a Certificate of Incorporation, Memorandum and Articles of Association of the applicant and that of any significant shareholder.
Mobile phone lenders are also be required to disclose the total charges for their loans, including interest rates, late payment and rollover fees, before disbursing credit to customers.
