Central Bank of Kenya Licenses 7 New Digital Credit Providers, Bringing Total to 58

The Central Bank of Kenya (CBK) has announced the licensing of 19 additional digital credit providers (DCPs), expanding the total count of registered companies in the sector to 51. This move, in accordance with Section 59(2) of the CBK Act, marks a significant step in enhancing regulatory control and consumer protection within Kenya’s financial sector.

As of March 2023, the CBK received a total of 480 licensing applications, underscoring the robust interest and regulatory compliance required for DCP operations. The bank reiterated its commitment to ensuring adherence to relevant laws and safeguarding consumer interests throughout the licensing process. Collaborative efforts with regulatory bodies such as the Office of the Data Protection Commissioner have been integral to upholding regulatory standards, focusing on business models, consumer protection measures, and the suitability of proposed shareholders, directors, and management teams.

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The newly licensed DCPs include a diverse range of entities such as Senti Capital, Autocheck, Lipa Later, and others, reflecting the sector’s expansion and adherence to recent regulatory reforms. These reforms aim to curb unethical practices and ensure responsible lending practices, aligning with initiatives to protect consumer data and regulate interest rates within the digital lending industry.