Nairobi News


CBK publishes approved list of mobile money lending companies

By Nyaboga Kiage September 19th, 2022 2 min read

The Central Bank of Kenya (CBK) on Monday, September 19, 2022, published a list of approved Digital Credit Providers.

The providers have had a long battle with CBK as it tried to regulate the sector and save Kenyans from unnecessary debt that saw them from been listed at the Credit Reference Bureau (CRB).

Nairobi News has established that a total of 288 applications were sent to CBK in the last seven months but only ten met the threshold.

“CBK has received 288 applications since March 2022 and has worked closely with the applicants since March. The process of reviewing the companies that applied is ongoing,” CBK said in a statement.

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A mobile subscriber uses two smart phones to share information. FILE PHOTO
A mobile subscriber uses two smart phones to share information. FILE PHOTO

It is not only CBK that is fully engaged in the process of regulating the companies but also the Office of the Data Protection Commissioner.

CBK also appreciated the help it has received from other stakeholders in ensuring that the process is successful.

The list includes; Mwanzo Credit Limited, Kweli Smart Solutions Limited, Jijenge Credit Limited, Giando Africa Limited (Trading as Flash Credit Africa) and Ceres Tech Limited.

The others are; Sokohela Limited, Sevi Innovation Limited, MyWagepay Limited and Rewot Ciro Limited.

Two weeks ago, CBK said that the companies that will not meet the strict outlined consumer protection rules that were introduced in December 2021.

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Some of the requirements include; mobile money lending companies to ensure that they disclose the total charges of their loans, including interest rates, late payment and rollover fees, before disbursing credit to consumers.

According to Digital Lenders Association of Kenya (DLAK) chairman Mr Kevin Mutiso Kenyans should expect better services, stronger customer protection laws and fewer compliant players in two weeks.

“Most people have applied and there are just a few small documents being asked for. Some names will be there, others will drop off,” he said.

Retired President Uhuru Kenyatta last December approved a change in law that allowed the central bank to regulate digital lenders, a move that gave the bank power to rein in lenders who violate consumer privacy.

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Global tech company Tala’s communication team sent out a statement after their name was missing on the list of approved Digital Credit Providers.

“We would like to reassure our stakeholders, including our customers and employees, that Tala submitted its application for the requisite licence in advance of the CBK’s deadline of September 17, 2022, and we are working with the CBK with regards to our application,” the statement read in part.

Adding, “In accordance with the provisions of The CBK Amendment Act, 2021 and The CBK (Digital Credit Providers) Regulations, 2022, Tala shall continue to operate as a digital credit provider pending issuance of our licence by the CBK.

In the meantime, we are committed to serving our customers in accordance with the applicable regulations and working with the CBK pending issuance of our licence.

We further understand that the CBK will continue to share details of the licenced DCP’s every week until the process is complete.”

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