The News:
- The Central Bank of Kenya has issued operating licenses to digital credit providers to open shop in Kenya.
- The number has now increased to 51, with the Central Bank continuing the approval process with other institutions.
In a statement released on 6th March 2024, the Central Bank of Kenya announced that it had issued out operating licenses to Digital Lending Services providers, with the help of other relevant regulatory bodies. With 32 other providers being in operation since March 2023, the total has increased to 51.
Role of digital lending apps
Digital lending applications provide users with quick and convenient loans, which can be repaid at a latter date within a set of terms. They offer alternatives to banks, which may take relatively longer to issue customers with loans. Additionally, they act as payment platforms to various other channels, at a fee.
Ensuring compliancy
The move, according to the Central Bank, would help ensure the businesses operate within the specified industry guidelines and laws. Amongst the various criteria used, involved assessing the business model, customer protection structures, and the ownership structure of the shareholders and overall management.
The digital credit/loan providers that have been approved to operate in Kenya include:
- Anjoy Credit Limited
- Asante FS East Africa Limited
- Autochek Limited
- Azura Credit Limited
- Ceres Tech Limited
- Chapeo Capital Limited
- Chime Capital Limited
- Colkos Enterprises Limited
- Creditarea Capital Limited
- Decimal Capital Limited
- Dexintec Kenya Limited
- EDOMX Limited
- Extend Money Services Limited
- Factorhouse Limited
- Fezotech Kenya Limited
- Fortune Credit Limited
- Fourth Generation Capital Limited
- Getcash Capital Limited
- Giando Africa Limited (Trading as Flash Credit Africa)
- Inventure Mobile Limited (Trading as Tala)
- Jijenge Credit Limited
- Jumo Kenya Limited
- Kweli Smart Solutions Limited
- Letshego Kenya Ltd
- Lipa Later Limited
- Little Pesa Limited
- Lobelitec Credit Limited
- Maralal Ledger Limited
- Marble Capital Solutions Limited
- MKM Capital Limited
- MFS Technologies Limited
- M-Kopa Loan Kenya Limited
- Mwanzo Credit Limited
- Mycredit Limited
- MyWagepay Limited
- Natal Tech Limited
- Ngao Credit Limited
- Okolea International Limited
- Pezesha Africa Limited
- Pi Capital Limited
- Rewot Ciro Limited
- Risine Credit Limited
- Senti Capital Limited
- Sevi Innovation Limited
- Sokohela Limited
- Tenakata Enterprises Limited
- UbaPesa Limited
- Umoja Fanisi Limited
- Zanifu Limited
- Zenka Digital Limited
- Zillions Credit Limited
So far, all of the approved credit providers are on Google Play store. As required by Google, all digital lending apps operating in Kenya have to be certified by a regulatory body, in this case the Central Bank.
So far, CBK has received 480 letters of application from interested parties, and has had to lean on the efforts of entities such as the Office of the Data Protection Commissioner to ease the approval process.