The Central bank of Kenya, Nairobi on Wednesday, December 30, 2020. PHOTO | DENNIS ONSONGO | NMG
Tala and 4G Capital are among the popular digital credit providers (DCPs) missing from the regulator’s initial list of those licensed to operate in Kenya.
The Central Bank Of Kenya (CBK) on Monday published a list of 10 DCPs out of 288 that applied for a fresh license to operate in the country.
The regulator has, however, clarified that other providers would be listed as the vetting process continues for those that complied with the September 17 application deadline.
“Other applicants are at different stages in this process, largely awaiting the submission of requisite documentation,” part of the statement issued by the CBK reads.
The ten applicants that made it to the CBK’s initial list include Ceres Tech Limited, Getcash Capital Limited, Glando Africa Limited (Trading as Flash Credit Africa), Jijenge Credit Limited and Kweli Smart Solutions Limited.
Others include Mwanzo Credit Limited, MyWagepay Limited, Rewot Ciro Limited, Sevi Innovation Limited and Sokhela Limited.
4G Capital made its application on time and is among the 288 who have been allowed to continue with their business as they wait for CBK to complete the licensing process.
Mobile loans have grown exponentially over the last few years as low-income households have been lured by the ease of accessibility.
Digital lenders that fail to meet strict consumer protection rules introduced under Digital Credit Providers Regulations, 2021 will be shut down.
Under the new rules, DCPs are required to provide a Certificate of Incorporation, Memorandum and Articles of Association of the applicant and that of any significant shareholder.
Mobile phone lenders are also be required to disclose the total charges for their loans, including interest rates, late payment and rollover fees, before disbursing credit to customers.
President Uhuru Kenyatta last December approved a change in law that allowed the central bank to regulate digital lenders, a move that gave the bank power to rein in lenders who violate consumer privacy.
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*Story has been revised to remove Branch as one of the firms yet to be listed by CBK. The digital lender was licensed following its acquisition of Century MFB, a local microfinance bank, in February this year.
