The Central Bank of Kenya has so far approved only 10 digital loan providers out of 288 applications received.
CBK previously announced that unregulated digital loan providers will apply for licenses by September 17, 2022.
CBK said in a statement on Monday that they are still under review. Other candidates are at various stages in this stage, waiting for the required documents to be submitted. This means the list can be more than 10 companies, and many can be rejected,” he said.
The 10 providers include Ceres Tech Limited, Getcash Capital, Jijenge Loans, Giando Africa, Kweli Smart Solutions and Mwanzo Credi Limited.
Others are Sokohela, Sevi Inovasi, Revot Ciro and MyWagepay Limited.
CBK urges applicants to submit pending documents as soon as possible to ensure completion of application review.
He also warned other unregulated DCPs who did not apply for licenses to cease and desist from the digital lending business.
This follows a 6-month transition period after CBK’s digital online rules were published in March.
“We encourage this applicant to submit the pending documents as soon as possible to ensure that the review of the application has been completed. Other unregulated DCPs that did not apply for a license, must cease and desist from the digital lending business,” he said. In December President Uhuru Kenyatta approved the Central Bank Amendment Act, empowering CBK to regulate non-deposit in 2021. Long largely unregulated credit. provider.
The law gives regulators the power to revoke permits for digital lenders who breach personal data to pursue borrowers and charge exorbitant fees for loans.
According to the FinAccess 2021 Household Survey, the general financial health of Kenyan seniors declined to 17.1 percent last year compared to 21.7 percent in 2019. This is associated with high financial illiteracy.
Kenya lags behind its East African peers in terms of savings.
A report by EFG Hermes looking at different investment options in the country shows that Kenya’s savings rate is 12 percent, lower than the African average of 17 percent.
This is half the average for low-income countries (26 percent of GDP).
In contrast, neighboring Uganda and Tanzania have exceeded 20 percent, although their per capita income is lower.