CBK expands list of licensed digital lenders as review of 700 applications continues
In a statement on Thursday, CBK said the approvals are part of an ongoing review of over 700 applications it has received since March 2022.
The Central Bank of Kenya (CBK) has licensed 41 more digital credit providers, raising the number of authorised digital lenders in the country to 126.
In a statement on Thursday, CBK said the approvals are part of an ongoing review of over 700 applications it has received since March 2022.
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It noted that the latest batch of approvals follows the licensing of 27 Digital Credit Providers (DCPs) in October 2024.
The licensing is being undertaken under Section 59(2) of the Central Bank of Kenya Act, which mandates all digital credit businesses to obtain regulatory approval from the CBK.
“CBK has received more than 700 applications since March 2022 and has worked closely with the applicants in reviewing their applications,” the regulator said, adding that the process has involved collaboration with other relevant regulators and agencies, including the Office of the Data Protection Commissioner.
Consumer protection
According to the CBK, engagements with applicants have addressed critical areas such as business models, consumer protection mechanisms, and the fitness and propriety of proposed shareholders, directors, and management teams.
“This is to ensure adherence to the relevant laws and, importantly, that the interests of customers are safeguarded. We acknowledge the efforts of the applicants and the support of other regulators and agencies in this process,” the CBK said.
Among the newly licensed digital lenders are Absolute Credit Kenya, Adroit Credit Limited, Asap Credit Limited, Aventus Technology Limited, Avenews Ke Limited, Bimas Kenya Limited, and BRAC Kenya Company Limited.
Under review
The CBK noted that several applications are still under review and at various stages of completion, with many pending the submission of requisite documentation.
“We urge these applicants to submit the pending documentation expeditiously to enable completion of the review of their applications,” the bank said.
The licensing and regulation of DCPs was introduced in response to widespread public complaints about predatory lending practices among unregulated digital lenders.
Key concerns included excessive interest rates, unethical debt collection methods and the misuse of personal information.
The CBK has encouraged the public to report any unregulated digital lenders via email to [email protected].
A full list of the 41 newly licensed DCPs is available on the CBK website.
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