Digital credit is gaining more popularity in the country with the latest addition of more firms, thanks to CBK.
The number of companies allowed to offer digital credit to Kenyans has now risen to 51 after the Central Bank of Kenya licensed 19 more, intensifying competition in the lucrative industry.
CBK said that the firms have been registered in collaboration with other regulatory authorities, including the Office of the Data Protection Commissioner, to ensure compliance with rules governing the digital lending space.
“The focus of the engagements has been inter alia on business models, consumer protection and fitness and propriety of proposed shareholders, directors and management,” CBK said.
“This is to ensure adherence to the relevant laws and, importantly, that the interests of customers are safeguarded.”
The licensing comes nearly a year after the last one, and close to two years since the CBK required mandatory registration of digital credit providers, a move aimed at controlling a sector that had become notorious for charging high interest on loans and abusing user data.
The new firms include Autocheck, Azura, Chapeo, Chime, Creditarea, Decimal, Dexintec, Factorhouse, Fezotech and Fortune.
Applications from firms seeking to enter the digital lending space increased to 480 from the 401 CBK reported at the time of the last licensing in March 2023