The number of companies allowed to offer digital credit to Kenyans has risen to 51 after the Central Bank of Kenya (CBK) licensed 19 more, intensifying competition in the lucrative industry.
CBK said on Wednesday that the firms have been registered in collaboration with other regulatory authorities, including the Office of the Data Protection Commissioner, to ensure compliance with rules governing the digital lending space.
“The focus of the engagements has been inter alia on business models, consumer protection and fitness and propriety of proposed shareholders, directors and management,” CBK said.
“This is to ensure adherence to the relevant laws and, importantly, that the interests of customers are safeguarded.”
The licensing comes nearly a year after the last one, and close to two years since the CBK required mandatory registration of digital credit providers (DCPs), a move aimed at controlling a sector that had become notorious for charging high interest on loans and abusing user data.
It is the fourth round of licensing since CBK started giving nods to DCPS in October 2022, after the six-month mandatory registration window expired. The new firms include Autocheck, Azura, Chapeo, Chime, Creditarea, Decimal, Dexintec, Factorhouse, Fezotech and Fortune.
Others are Lipa Later, Lobelitec, Maralal Ledger, Marble Capital, MKM Capital, Pi Capital, Senti Capital, Ubapesa and Zillions Credit.
Applications from firms seeking to enter the digital lending space increased to 480 from the 401 CBK reported at the time of the last licensing in March 2023. CBK says the new applicants are “at different stages of the process, largely awaiting the submission of requisite files”.
“We urge these applicants to submit the documentation expeditiously to enable completion of the review of their applications,” it said.
The industry has been growing, with an estimated four per cent of Kenyans accessing credit through DCPs, according to the latest data.
