CBK: Only 10 out of 288 Digital lenders licensed so far
Business
By
Mate Tongola
| Sep 19, 2022
Only ten Digital Credit Providers have been licensed as of this morning, the Central Bank of Kenya (CBK) says.
According to CBK, the approval is in line with the law that requires all operating unregulated DCPs to apply for a licence within six months of the publication.
Unlicensed lenders have, therefore, been asked to ease operations.
"This is pursuant to Section 59(2) of the Central Bank of Kenya Act that requires all operating unregulated DCPs to apply for a license within six months of the publication or cease operations," CBK said on Monday.
In a press release dated September 19, CBK has listed the ten credit providers that have been approved so far.
READ MORE
KQ suspends flights to Kinshasa over detention of staff
Kenyan retailers ready to pounce as Ethiopia to open up market
Hiring civil servants on contract will fuel corruption, experts say
Sugarcane farmers blame woes on Agriculture and Food Authority
Absa Life Assurance earnings jump 84pc to Sh667 million
Ruto pushes rich nations to boost funding for poor States
Counties sitting on Sh1b emergency fund amid raging floods
Poultry players protest US import deal plan
Uptake of AI-powered home solutions low despite many benefits
Logistics firm eyes bigger market pie after MSC pact, rebrand
They are: Ceres Tech Limited, Getcash Capital Limited, Giando Africa Limited, Jijenge Credit Limited, Kweli Smart Solutions Limited, Mwanzo Credit Limited, MyWagepay Limited, Rewot Ciro Limited, Sevi Innovation Limited and Sokohela Limited.
"Other applicants are at different stages in the 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 their application," the press release reads in part.
At the same time, CBK has warned unregulated DCPs that did not apply for licensing to halt their operations.
Central Bank has also disclosed that it has received 288 applications since March 2022 and has been working with the applicants over the last six months in reviewing their applications.
"Additionally, CBK has engaged other regulators and agencies pertinent to the licensing process, including the Office of the Data Protection Commissioner," the statement read in part.
There had been growing concern on the privacy of personal data of loan defaulters by rogue digital lenders to third parties before lawmakers added a clause meant to deal with those who breach customer confidentiality.
The digital lenders have also been blamed for luring Kenyans especially the youth into taking loans and end up at being listed at the Credit Reference Bureau (CRB) for defaulting as little as Sh 50.
- Cabinet orders 48-hour evacuation from high-risk areas
- Hiring civil servants on contract will fuel corruption, experts say
- Kenyan retailers ready to pounce as Ethiopia to open up market
- KQ suspends flights to Kinshasa over detention of staff
- Is government on 'fuliza' mode?