The Central Bank of Kenya (CBK) has granted licenses to an additional 27 Digital Credit Providers (DCPs) even as it takes steps to tighten oversight within the digital lending sector.

This brings the total number of licensed DCPs to 85, following the licensure of seven others in June 2024.

CBK’s action comes amid ongoing efforts to regulate a sector long plagued by consumer complaints over unethical practices.

The newly licensed DCPs include:

1. Anjoy Credit Limited

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 2. Asante FS East Africa Limited

 3. Autochek Limited

 4. Azura Credit Limited

 5. Bytech Credit Limited

 6. Ceres Tech Limited

 7. Chapeo Capital Limited

 8. Chime Capital Limited

 9. Colkos Enterprises Limited

 10. Creditarea Capital Limited

 11. Decimal Capital Limited

 12. Dexintec Kenya Limited

 13. Dime Credit Limited

 14. Dreamlife Technology Limited

 15. ED Partners Africa Limited

 16. EDOMX Limited

 17. Ellegant Credit Limited

 18. Extend Money Services Limited

 19. Factorhouse Limited

 20. Fahari Point Capital Limited

 21. Fezotech Kenya Limited

 22. Fincorp Credit Limited

 23. Fortune Credit Limited

 24. Fourth Generation Capital Limited

 25. Getcash Capital Limited

 26. Giando Africa Limited (Trading as Flash Credit Africa)

Since March 2022, CBK has received over 730 applications from prospective DCPs, demonstrating the rapid expansion of digital lending in the country.

The institution has worked closely with these applicants, engaging various regulatory agencies, including the Office of the Data Protection Commissioner, to ensure compliance with legal standards.

The scrutiny of these applications centred on critical aspects such as the business models of the applicants, consumer protection measures, and the suitability of shareholders, directors, and management.

"We acknowledge the efforts of the applicants and the support of other regulators and agencies in this process," CBK stated.

The rigorous licensing and supervision process was prompted by public concerns about the behaviour of unregulated DCPs.

These providers had been accused of predatory lending practices, exorbitant interest rates, unethical debt recovery methods, and misuse of personal data.

CBK noted that such issues fuelled the need for tighter regulatory measures to safeguard the interests of consumers.

CBK has also urged applicants who are yet to complete the process to submit the necessary documentation promptly to facilitate their review.

The list of the 85 licensed DCPs is available online, and the public has been encouraged to report any unlicensed providers to CBK.

"Reports by the public on unregulated DCPs can be sent through [email protected]." CBK said.

The licensing drive marks a significant step in reforming Kenya’s digital lending ecosystem, providing consumers with enhanced protections while supporting the continued growth of the sector.