There are now 32 licenced digital credit providers (DCP) in Kenya. The Central Bank of Kenya disclosed this in a statement on Monday, March 27, 2023, even as it revealed that it had licenced ten more digital credit providers.
Beginning in 2022, the CBK began the process of licencing digital credit providers in Kenya. According to the CBK, since March 2022, it has received 401 applications. While 32 is only a fraction of the total number of businesses that have applied for the licence, the CBK says this is due to applicants not submitting certain documents on time.
In its statement, it encouraged applicants to quickly submit pending documentation to speed up the process.
"We urge these applicants to submit the pending documentation expeditiously to enable completion of the review of their applications," it read. The CBK also works with other government agencies during the vetting process with the Office of the Data Protection Commissioner, one of those mentioned.
The scope of these engagements covers business models, consumer protection, and the propriety of certain stakeholders in the business. Per the CBK, the process of licencing became necessary following numerous complaints by Kenyans regarding debt collection practices, predatory lending practices, and abuse of personal data by lenders.