Kenyan Central Bank, CBK Licenses 10 More Digital Lenders

The Central Bank of Kenya (CBK) has gives digital credit provider (DCP) Licenses 10 more online loan providers in the country. These have made it to addup to 32 digital credit providers in Kenya. This was disclosed by CBK on Monday, March 27, 2023.

Initially in 2022, the CBK started the process of licencing digital loan platforms in Kenya. According to the Apex bank, since March 2022, it has received 401 applications. But 32 fintechs are only qualify to apply for the licence, the CBK says this is due to applicants not submitting certain documents on time.

However, the Kenya's Apex bank said in its statement that applicants can quickly submit pending documentation to speed up the license application process. The central bank also works with other Kenyan government agencies during the vetting process with the Office of the Data Protection Commissioner, one of those mentioned.

"We urge digital credit platforms to submit their pending documentation expeditiously to enable completion of the review of their applications." Central Bank, Kenya declared.

The scope of these engagements covers business models, consumer protection, and the propriety of certain stakeholders in the business. Per the Kenyan Apex bank, the process of licencing online lending platforms became necessary following numerous complaints by Kenyans regarding debt collection practices, predatory lending practices, and abuse of personal data by lenders.

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