M-Kop, Tala among 12 digital lenders okayed by CBK to operate in Kenya
The Central Bank of Kenya has okayed a further 12 Digital Credit Providers (DCPs) to operate in Kenya through the issuance of licenses.
This is pursuant to Section 59(2) of the CBK Act, bringing the number of licensed DCPs to 22 following the licensing of 10 DCPs announced in September 2022.
“The Central Bank of Kenya (CBK) announces the licensing of 12 Digital Credit Providers (DCPs),” said CBK in a statement Monday.
The 12 include M-Kopa, one of the leading DCP in the country.
Others include Ceres Tech Limited, Getcash Capital Limited, Flash Credit Africa, Jijenge Credit Limited, Kweli Smart Solutions Limited, Tala, Jumo Kenya Limited, Letshego Kenya Ltd, MFS Technologies Limited, Mwanzo Credit Limited and Mycredit Limited.
The regulator said it engaged other regulators and agencies pertinent to the licensing process, including the Office of the Data Protection Commissioner.
It follows the receipt of 381 DCPs applicants since March 2022, with first batch (10) having been licenced in September last year.
These 10 include Sokohela Limited, Sevi Innovation Limited, Rewot Ciro Limited, MyWagepay Limited, Mwanzo Credit Limited, Kweli Smart Solutions Limited.
Others are Jijenge Credit Limited, Giando Africa Limited (Trading as Flash Credit Africa), Getcash Capital Limited and Ceres Tech Limited.
Other applicants are at different stages in the approval process, largely awaiting the submission of requisite documentation.
CBK had attached to it a number of conditions, among them their source of funds before being granted a license.
Source of funds disclosure is meant to ensure that lenders are not engaging in financial crimes like money laundering.
These concerns relate to the predatory practices of the previously unregulated mobile lenders, and in particular, their high cost, unethical debt collection practices, and the abuse of personal information.