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Monday, January 30, 2023 –Central Bank of Kenya CBK has licensed twelve more digital lenders as part of its efforts to streamline the industry.
This is happening after the CBK, last year, shut down several credit providers DCPs following a crackdown on unscrupulous players who were exploiting clients by heavy interest rates and tough repayment conditions.
The licensing of these 12 more pushes the total number of those cleared now to 22 after 10 others were cleared in September last year.
An official communique from the CBK on Monday January 30 noted that the move to clear players – one after another – will help safeguard customers interests as well as improve client protection engagement.
“The focus of the engagements has been inter alia on business models, consumer protection and fitness and propriety of proposed shareholders, directors, and management.
“This is to ensure adherence to the relevant laws and importantly that the interests of customers are safeguarded. We acknowledge the efforts of the applicants and the support of other regulators and agencies in this process,” the statement read in part.
Those who have not complied well with all the new requirements have been challenged to work on the pending papers before seeking official clearance.
Kenya had become a dumping site for rogue digital lenders who were running their financial businesses without any regulation; what then led to a public uproar.
Tala, M-Kopa are among the 12 digital credit providers DCPs who have been granted licenses by the CBK.
