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CBK Licenses 12 More Digital Lenders – See All 22 Licensed So Far

BUSINESS TODAYJan 30, 20231 Mins read1.2k

Since March 2022, 381 lenders have applied for CBK licenses to comply with new regulations. [Photo/ Standard Group]

The Central Bank of Kenya (CBK) on Monday, January 30 announced the licensing of 12 more digital credit providers, bringing the total number of licensed digital lenders to 22.

Since March 2022, 381 digital lenders have applied for CBK licenses to comply with new regulations. The apex bank previously announced the licensing of ten lenders in September last year.

The latest update by CBK comes against the backdrop of frustration from digital lenders who are yet to receive their licenses, and face potential removal of their apps from Google Play Store. In November 2022, Google announced that it would require loan apps to submit proof of licensing in Kenya to host them on its app store, with effect from January 31, 2023.

Google earlier stated that it would only accept declarations and licenses from entities published under the Directory of Digital Credit Providers on the official website of the CBK. Similar requirements were also announced for loan apps on Google Play Store in India, Indonesia, the Philippines, Nigeria, and Kenya – representing the global wave of regulation of digital lenders.

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The CBK highlighted that it was was working in partnership with agencies including the Office of the Data Protection Commissioner to review applications and issue approvals. The licensing requirements are among measures intended to rein in the digital lending industry long accused of practices including data privacy infringement through debt shaming, and exorbitantly high interest rates.

The Central Bank of Kenya (Amendment) Act, which came into effect in December 2021, brought all digital lenders under the supervision of the Central Bank of Kenya (CBK), with a regulatory structure similar to banks and microfinance institutions.

View the full list of licensed providers below: