•CBK said that they are still in the process of reviewing those that have not been approved.
•The law empowers the regulator to revoke permits of digital lenders who breach the confidentiality of personal information to pursue defaulting borrowers and those charging extremely high rates on loans
Image: FILE
The Central Bank of Kenya has so far approved only 10 Digital Credit Providers out of the 288 applications received.
CBK had earlier announced that all unregulated Digital Credit Providers apply for a license by September 17, 2022.
In a statement on Monday, CBK said that they are still in the process of reviewing those that have not been approved.
"Other applicants are at different stages in this process, largely awaiting the submission of requisite documentation. This means that the list might go higher than 10 companies and there is a high chance that the majority of them could get rejected," it reads.
The 10 providers include Ceres Tech Limited, Getcash capital, Jijenge credit , Giando Africa, Kweli smart solutions and Mwanzo Credi limilted.
Others are Sokohela limited, Sevi Innovation, Rewot Ciro and MyWagepay limited .
CBK has urged the applicants to submit the pending documentation expeditiously to enable the completion of the review of their applications.
It further gave a warning to all other unregulated DCPs that did not apply for licensing that they must cease and desist from conducting digital credit business.
This follows the lapse of the 6-month transition period after CBK digital online regulations were published back in March.
“We urge these applicants to submit the pending documentation expeditiously to enable the completion of the review of their applications. All other unregulated DCPs that did not apply for licensing must cease and desist from conducting digital credit business,” reads the statement further.
In December, President Uhuru Kenyatta approved the Central Bank Amendment Bill, 2021 giving CBK powers to regulate non-deposit-taking credit providers who have remained largely unregulated for a long time.
The law empowers the regulator to revoke permits of digital lenders who breach the confidentiality of personal information to pursue defaulting borrowers and those charging extremely high rates on loans
According to the 2021 FinAccess Household Survey, the overall financial health of Kenya's adult population deteriorated to 17.1 per cent last year compared to 21.7 per cent in 2019. This was attributed to high financial illiteracy.
Kenya lags behind its East Africa peers in terms of savings.
The report by EFG Hermes that looks at different investment options in the country shows that Kenya's saving rate is at 12 per cent, way below Africa's average of 17 per cent.
This is half of the average for low-income countries (26 per cent of GDP).
By contrast, neighbouring Uganda and Tanzania have already crossed the 20 per cent mark even though their per capita income is significantly lower.