Mobile lenders given deadline to get licences

Wednesday, March 16th, 2022 00:00 | By
Mobile lenders given deadline to get licences.

Digital lenders have up to September to apply for fresh licences in line with new Central Bank of Kenya (CBK) regulations. This is after the regulator announced yesterday that new rules governing the sector will be gazetted this month.

The regulations seek to rein in predatory lending activities and other vices by some of the players in the sector.

“Regulations governing digital credit providers ( DCPs) will be gazetted later this month to pave the way for the licensing and oversight by CBK,”  Central Bank said in a statement. It said digital lenders that will not get licences will have to cease their operations henceforth.

Cease operations

“All previously unregulated DCPs will be required to apply to CBK for a license by September 2022 or cease operations,” CBK Governor Patrick Njoroge said.

Central Bank said the proposed regulations will provide for the licensing, governance, and credit operations of Digital Credit Providers (DCPs).

They also provide for consumer protection, credit information sharing, and elaborate on anti-money laundering and combating the financing of terrorism obligations for the digital credit providers, it added.

This comes shortly after Parliament passed a law allowing CBK to regulate digital lenders that were later assented to by the president.

Digital Lenders Association of Kenya (DLAK) boss Kevin Mutiso said the coming of the lenders under CBK was a win for consumers and the fintech community.

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