"Cease and Desist": CBK Warns Digital Lenders that Haven't Applied for Licence – Tuko.co.ke

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The Central Bank of Kenya (CBK) has given a green light to 10 Digital Credit Providers (DCPs) in the ongoing licencing of the mobile lenders.
The regulator announced that the 10 are among the 288 applications that had been filed since March 2022 when the regularisation process began.
In a statement on Monday, September 19, CBK said it was working in conjunction with other regulators and agencies including the Office of the Data Protection Commissioner, in reviewing the pending applications and they will be updated in due course.
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The lenders that have so far been approved include:
The regulator asked lenders that have not applied for the permits to stop conducting business in Kenya immediately.
The deadline for the application, pursuant to Section 59(2) of the Central Bank of Kenya Act, was on September 17, 2022, which is due.
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The licencing and oversight of DCPs was informed by concerns raised by the public about the predatory practices of the unregulated lenders.
Some of the issues raised were their high cost, unethical debt collection practices and abuse of personal information.
In other news, CBK announced plans to curb money laundering in the digit credit space.
Starting September 18, 2022, CBK will require digital lenders in Kenya to disclose where they get the money they use to lend to Kenyans.
CBK will need lenders to provide information about their investors and prove that the funds will not fund crime. Unlike banks that raise funds from taking deposits, digital lenders raise money from investors.
The new requirement is part of the recently gazetted Central Bank of Kenya (Digital Credit Providers) Regulations.
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Source: TUKO.co.ke
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