•The issuance of the operation licenses brings the number of licensed DCPs to 22 following the licensing of 10 DCPs announced in September 2022.
•It is still expected that more applicants will be licensed after CBK said that other applicants are at different stages in the process
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Players in the digital lending space have welcomed the Central Bank of Kenya's move to issue operating licenses to 12 firms.
The move comes after an outcry by the players in the lending space who had hit out at the regulator for the delays in getting operational licenses.
Some of the Digital Credit Providers (DCPs) had been locked out from Google Play store in new changes that are meant to ensure that only credible lenders operate in the country.
The issuance of the operation licenses brings the number of licensed DCPs to 22 following the licensing of 10 DCPs announced in September 2022.
The regulator said it has so far received 381 applications since March 2022 and is reviewing the applications by engaging the applicants and other regulators and in conjunction with the Multilateral Investment Guarantee Agency (MIGA) pertinent to the licensing process, including the Office of the Data Protection Commissioner.
“This is to ensure adherence to the relevant laws and importantly that the interests of customers are safeguarded,” CBK said in a statement yesterday.
Tala Country General Manager, Munyi Nthigah told The Star that the license reaffirms the company’s aim of operating within the bounds of global best practices and protecting consumers' data privacy.
“This is a huge milestone for Tala, who has operated in Kenya since 2014 and supported responsible regulation of digital lending for the benefit of Kenyans, particularly the underserved and underbanked,” said Munyi.
Among the licensed digital lenders include Ceres Tech Limited, Getcash Capital Limited, Giando Africa Limited (Trading as Flash Credit Africa), Jijenge Credit Limited, Kweli Smart Solutions Limited, Inventure Mobile Limited (Trading as Tala), Jumo Kenya Limited, Letshego Kenya Ltd, MFS Technologies Limited, M-Kopa Loan Kenya Limited and Mwanzo Credit Limited.
Others include Mycredit Limited, MyWagepay Limited, Natal Tech Company Limited, Ngao Credit Limited, Pezesha Africa Limited, Rewot Ciro Limited, Sevi Innovation Limited, Sokohela Limited, Umoja Fanisi Limited, Umoja Fanisi Limited and Zanifu Limited.
“Moving forward we look forward to continued collaboration with The Central Bank of Kenya, the Office of the Data Protection Commissioner and other industry regulators in maintaining regulatory best practices in the market,” added Director of Legal at Tala Nicola Muriuki,
The licensing comes at a time that the government-backed Hustler Fund has hit Sh16.5 billion in disbursement as of yesterday exactly two months since its launch.
It is still expected that more applicants will be licensed after CBK said that other applicants are at different stages in the process, largely awaiting the submission of requisite documentation.