CBK lists 27 more Digital Credit Providers

By Newsroom On Oct 1, 2024

The Central Bank of Kenya (CBK) has announced the licensing of 27 additional Digital Credit Providers (DCPs), bringing the total number of licensed DCPs to 85. This latest licensing round is part of CBK's ongoing efforts to regulate the digital lending sector, which began with the Central Bank of Kenya (Amendment) Act of 2021. The Act empowered CBK to license and supervise DCPs, addressing concerns about predatory lending practices and data privacy issues. Since March 2022, CBK has received over 730 DCP applications, working closely with applicants and other regulators, including the Office of the Data Protection Commissioner, to ensure compliance with relevant laws and safeguard consumer interests. The newly licensed DCPs include a diverse range of companies, from established fintech firms to new entrants in the digital lending space. Notable additions include Ambush Capital Limited (trading as FlashPesa), Momentum Credit Limited, and Premier Credit Limited. This expansion is expected to increase competition in the digital lending market, potentially leading to more innovative products and better terms for consumers. However, it also highlights the need for continued vigilance in consumer protection and responsible lending practices in Kenya's rapidly evolving fintech landscape. — Kenya's Central Bank Head Quarters

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By Steve UMIDHA

The Central Bank of Kenya (CBK) has announced the licensing of 27 additional Digital Credit Providers (DCPs), bringing the total number of licensed DCPs to 85.

This latest licensing round is part of CBK’s ongoing efforts to regulate the digital lending sector, which began with the Central Bank of Kenya (Amendment) Act of 2021. The Act empowered CBK to license and supervise DCPs, addressing concerns about predatory lending practices and data privacy issues.

Since March 2022, CBK has received over 730 DCP applications, working closely with applicants and other regulators, including the Office of the Data Protection Commissioner, to ensure compliance with relevant laws and safeguard consumer interests.

The newly licensed DCPs include a diverse range of companies, from established fintech firms to new entrants in the digital lending space. Notable additions include Ambush Capital Limited (trading as FlashPesa), Momentum Credit Limited, and Premier Credit Limited.

This expansion is expected to increase competition in the digital lending market, potentially leading to more innovative products and better terms for consumers.

However, it also highlights the need for continued vigilance in consumer protection and responsible lending practices in Kenya’s rapidly evolving fintech landscape.