The Central Bank of Kenya (CBK) has licensed an additional 19 companies to offer digital credit services, bringing the total number of approved firms to 51. This move is expected to intensify competition within the lucrative digital lending industry.
In a statement issued on Wednesday, CBK disclosed that these companies have been registered in collaboration with other regulatory authorities, such as the Office of the Data Protection Commissioner.
The mandatory registration arose after complaints arose from the public that digital lenders were charging high interest on loans and abusing user data by bullying kin and friends of defaulters.
CBK explained that the primary goal for registration and vetting is to uphold relevant laws and safeguard the interests of customers.
The regulator further emphasized that engagements with these companies focused on various aspects, including business models, consumer protection, and the suitability of shareholders, directors, and management teams.
This latest licensing round marks the fourth since CBK began granting approvals to Digital Credit Providers (DCPs) in October 2022, following the expiration of a six-month mandatory registration period.
Among the newly licensed firms are Autocheck, Azura, Chapeo, Chime, Creditarea, Decimal, Dexintec, Factorhouse, Fezotech, and Fortune.
Others include Lipa Later, Lobelitec, Maralal Ledger, Marble Capital, MKM Capital, Pi Capital, Senti Capital, Ubapesa, and Zillions Credit.
