CBK Licenses More Digital Lenders as Loan Disbursements Hit Ksh165B
The Central Bank of Kenya (CBK) has licensed 29 more digital credit providers (DCPs), bringing the total number of regulated lenders in the sector to 281.
In a September 30 press release, the regulator said the new approvals aim to ensure compliance with the law and safeguard the interests of customers using digital lending services. It noted that the licensing follows the legal framework under Section 59(2) of the Central Bank of Kenya Act.
“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.
The announcement follows CBK’s earlier approvals in July, when it licensed 25 digital credit providers and expanded the number of lenders operating under its oversight.
The Central Bank of Kenya (CBK) said it has received more than 900 applications from firms seeking digital credit provider licences since March 2022.
The regulator said it reviews each application by assessing factors such as the firms’ business models, consumer protection measures, and the suitability of proposed shareholders, directors, and managers.
CBK also noted that some applicants are still at different stages of the approval process and that many have pending documents that they must submit 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.
By August, licensed digital credit providers had issued 9,596,509 loans worth a combined Ksh165.1 billion, the Central Bank of Kenya (CBK) reported.
CBK said the licensing push follows growing concerns about unregulated digital lenders, including high borrowing costs, unethical debt collection practices, and misuse of customers’ personal information. The regulator urged the public to report such operators.
In July, a Small Claims Court ruling reinforced the need for digital lenders to be properly licensed. The court said a lender operating without a CBK licence would not be able to enforce lending claims.
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