Digital lenders have been protesting delays in getting operational licenses from the Central Bank of Kenya after being barred from Google Play store and lack of interest from funders that provide cash for onward lending.
An estimated 278 digital credit providers still await the CBK’s approval after filing applications with the banking regulator last year.
Out of 288 applicants, the Central Bank of Kenya (CBK) only approved the operations of only 10 digital credit providers (DCPs).
All other unregulated DCPs that did not apply for licensing were ordered to desist from conducting digital credit business.
The regulator announced in March 2022 that all unregulated Digital Credit Providers apply for a license by September 17, 2022, due to concerns raised by the public about the predatory practices of digital lenders, among them, high costs, unethical debt collection practices, and the abuse of personal information.