The Central Bank of Kenya (CBK) has licensed 29 additional digital credit providers (DCP), raising the number of regulated lenders in the sector to 281.

🇰🇪 Breaking It Down

The regulator announced the latest approvals in a September 30 press release obtained by Kenyans.co.ke , emphasising that the process is intended to ensure compliance with the law and protect the interests of customers using digital lending services.

“The Central Bank of Kenya (CBK) announces the licensing of an additional 29 Digital Credit Providers (DCPs). This is pursuant to Section 59(2) of the Central Bank of Kenya Act (CBK Act),” the release stated.

This development comes after the licensing of 25 digital credit providers in July expanded the number of lenders operating under CBK oversight.

📌 What You Need to Know

CBK said it has received more than 900 applications from firms seeking digital credit provider licences since March 2022.

It explained that applications are reviewed with attention to business models, consumer protection measures and the suitability of proposed shareholders, directors and managers.

According to CBK, some applicants still remain at different stages of the approval process, with many still required to submit outstanding documents before their applications can be completed.

“We urge these applicants to submit the pending documentation expeditiously to enable completion of the review of their applications,” CBK wrote.

Licensed digital credit providers mainly offer loans through digital platforms, including Unstructured Supplementary Service Data (USSD) codes.

Their products include education and development loans, short-term personal credit, asset financing and business loans.

📰 Source: Kenyans.co.ke