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Latest List of Licensed Digital Lenders in Kenya
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The list of licensed digital lenders in Kenya has recently expanded, reflecting significant changes in the financial landscape. The Central Bank of Kenya has licensed a total of 51 digital lenders so far.
The idea is to ensure that licensees are considered valid lenders in a regulated and transparent environment.
This move is part of wider efforts by the Digital Lenders Association of Kenya to protect consumers better and restore confidence in the sector.
As digital lenders increase in number in Kenya, borrowers should expect better services and accountability, as some of the past complaints about this industry have involved unethical practices.
This article provides the complete list of licensed digital lenders in Kenya. It will explain what licensed digital lenders are, the importance of selecting a licensed provider, and how to identify them.
As you go through this guide, you will have enough information to make an informed decision and find the best fit for a digital lender for your needs.
What are Licensed Digital Lenders?
Licensed digital lenders are financial institutions accredited to offer loans through digital platforms. They are supposed to operate within regulatory frameworks requiring them to get legal operation licenses.
This form of licensing ensures lenders stick to consumer protection laws and ethical lending practices that protect the borrower from predatory behaviours.
This is because, in many places, different regulatory bodies keep a list of recommended creditors to help potential clients find legitimate ones while trying to minimize the risks involved with unlicensed businesses.
Read Also – Detailed List of Loan Apps Approved by CBN
What Criteria Must Digital Lenders in Kenya Meet to Be Licensed?
To be licensed as a digital lender in Kenya, digital lenders must meet the following key criteria:
1. Application Requirements
- Submit a completed Form CBK DCP 1 application to the Central Bank of Kenya (CBK).
- Submit an application fee which is non-refundable of KES 5,000
- Deliver a certified copy of the certificate of incorporation.
- Provide certified copies of the memorandum and article of association
- Inform the CBK of the applicant’s registered address
2. Suitability Assessment
- The CBK examines the applicant record, the source of the fund, and the suitability of the managers in professional and moral terms.
- Where the nominee shareholders have proposed directors who have not filled the Fit & Proper Forms, the same have to be filled by the proposed Directors
3. Compliance Documents
- Ensure that service and connection agreements are available from Telecommunications Service Providers.
- Submit a copy of the Data Protection Policy.
- Furnish Dispute Resolution Policies Reveal the Terms and Conditions of the Digital Lender.
4. Licensing Fees
- Pay a yearly license fee of KES 20,000 to the CBK
5. Regulatory Reporting
- Demonstrate regulatory reporting exercise to up to the CBK standards
- File an annual return indicating compliance with the regulations by December.
Consequently, the CBK may cancel or freeze a digital lender’s license if it violates the rules, discloses erroneous information, engages in money laundering activities, shuts down, or operates in a prejudicial manner to consumers.
In general, licensing, as seen here, is meant to check whether digital lenders in Kenya are able to meet specified capital base, liquidity, and data privacy standards to operate safely in the country.
Also Read – 21 Loan Apps That Will Give 500k Loan to First Timers in Nigeria
What is the Latest List of Digital Licensed Lenders in Kenya?
As of now, the CBK recommended 19 additional digital licenced lenders in Kenya in March 2024, meaning that 51 firms will become legal providers in the country.
This means that the licensing process is intended to enhance consumer protection and ensure the positive and sustainable advancement of the digital lending industry.
With that being said, Here is the latest list of the licenced digital lenders in Kenya so far:
1. Anjoy Credit
2. Asante FS East Afric
3. Autochek
4. Azura Credit
5. Ceres Tech
6. Chapeo Capital
7. Chime Capital
8. Colkos Enterprises
9. Creditarea Capital
10. Decimal Capital
11. Dexintec Kenya
12. EDOMXq
13. Extend Money Services
14. Factorhouse
15. Fezotech Kenya
16. Fortune Credit
17. Fourth Generation Capital
18. Getcash Capital
19. Giando Africa
20. Inventure Mobile
21. Jijenge Credit
22. Jumo Kenya
23. Kweli Smart Solutions
24. Letshego Kenya
25. Lipa Later
26. Little Pesa
27. Lobelitec Credit
28. Maralal Ledger
29. Marble Capital Solutions
30. MKM Capital
31. MFS Technologies
32. M-Kopa
33. Mwanzo Credit
34. Mycredit
35. MyWagepay
36. Natal Tech
37. Ngao Credit
38. Okolea International
39. Pezesha Africa
40. Pi Capital
41. Rewot Ciro
42. Risine Credit
43. Senti Capital
44. Sevi Innovation
45. Sokohela
46. Tenakata Enterprises
47. UbaPesa
48. Umoja Fanisi
49. Zanifu
50. Zenka
51. Zillions Credit
Why Choose a Licensed Digital Lender?
The best way to avoid being defrauded is to agree to borrow from a registered digital Lender in Kenya. Here are some key reasons to consider:
- Regulatory Compliance: Licensed lenders strictly operate and conform to the legal channels that have been put in place, standards that protect the consumers and ensure fair conduct in the way that the loan is issued.
- Data Security: They allow the organization to implement stringent data privacy policies, minimizing the occurrence of breaches involving users’ personal data.
- Faster Processing: Digital lending is further distinguished by professional, high-technology online lenders that approve loans in a few minutes, increasing convenience.
- Wider Accessibility: It serves a broader market, especially by offering credit to people who may not be able to access credit from normal commercial banks.
- Transparency: There are standard procedures where licensed digital lenders tend to provide transparent data on loans, stating their terms, thereby enabling users to make the right decision.
Selecting credible and legitimate digital lenders may be able to grant loans because they have undergone licensing and are, hence, safer than other quack online lenders.
Read Also – Full List of Genuine Loan Apps in Kenya
How Can Consumers Identify Licensed Digital Lenders in Kenya?
Here are a few key ways consumers can identify licensed digital lenders in Kenya:
1. Check for the CBK License Number
Any digital lender in Kenya is restricted without an operating license issued via the CBK pursuant to the provisions in the Central Bank of Kenya (Amendment) Act 202.
All licensed digital lenders in Kenya will indicate their CBK license number on their website and app.
2. Ensure You Look at the CBK’s List of Licensed Digital Lenders.
The CBK, as a regulatory body, has a list of all the licensed digital lenders displayed on its website. In March 2024, the 51 above-noted lenders were licensed, and more firms will be licensed in a month.
3. Make Sure That Lender Meets Requirements
From the 2021 amendments passed, the CBK has been endowed with the power to enforce regulations on digital lenders. Licensed lenders must:
- Ensure not to threaten, use violence or obscene language against borrowers, call borrowers’ contacts or in any way harass them in the process of seeking the debts.
- Customers’ information is confidential and only shared with the credit reference list with customer consent.
- At least have a physical office in Kenya.
Consumers should generally avoid failing lenders since they don’t possess the qualities above.
4. Take Advice From the Digital Lenders Association of Kenya (DLAK)
The Digital Lenders Association of Kenya members have signed up to follow ethical lending practices, which can be validated through the association’s contacts.
5. Beware of Unlicensed Lenders
Carrying out a digital lending business without a CBK license is now criminal.
It attracts a maximum of three years imprisonment, or a fine not exceeding five million Kenya shillings. This is because unregulated lenders may offer some high-pressure loans.
Kenyan consumers can more safely identify licenced digital lenders to borrow from by seeking the CBK license number, cross-checking with the existing regulator’s list of licenced digital lenders in Kenya, and strictly following the regulations. This also ensures that one does not borrow from unauthorized money lenders.
Also Read – 15 Best Mobile Loan Apps for Instant Loan in Kenya
How Do I Report a Complaint Against a Licensed Digital Lender in Kenya?
As of now, CAK is the relevant body to which you can report complaints about a licensed digital lender in Kenya. You may do this via email, phone call, or even physically going to the offices of the concerned organization.
Complete any form about a consumer complaint containing all the information needed. The CAK will inform the lender of the receipt and may call the lender for additional information.
If this is invalid, they can use administrative measures to enforce their decisions or refer the complaints to the Office of the Director of Public Prosecutions.
What’s Next for Digital Lending in Kenya?
Digital loans in Kenya are poised for growth due to the growing demand for credit.
The Digital Lenders Association of Kenya (DLAK) enables the standard-setting process and cooperation within the sector’s companies.
In the future, it is expected that emphasis will be placed on improving services provided to SMEs, as they are becoming the key borrowers.
This goes a long way toward showing that more people are adopting mobile lending for convenience; hence, we can predict a brighter future for digital lenders.
Read Also – How Does Fuliza Loan in Kenya Work?
Final Thoughts
Currently, the Kenyan government, through the Central Bank of Kenya, has put out its first list, which now recognizes 51 licensed digital lenders in Kenya.
This program is designed to improve consumer welfare and curb all forms of unlawful lending. In this landscape, there is an association known as the Digital Lenders Association of Kenya that fights for responsible lending.
With more online lenders seeking licenses in Kenya, it is believed that Kenyan borrowers will benefit from better services and more proper disclosure.
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Frequently Asked Questions
Why is licensing of digital lenders relevant?
Licensing is a measure that seeks to govern the industry, safeguard the interests of consumers, and maintain the integrity of the stocking lenders.
Are the digital lenders safe to provide my personal information to?
Digital lenders governed under the license are bound by data protection laws thereby, you are safe with your information.
How frequently is the list of digital lenders with current licenses provided?
This list of licensed digital lenders in Kenya is usually revised whenever new licenses are issued or some licenses are cancelled. The frequency or the time taken to make these updates is not fixed.
Is there likely to be many more digital lenders who are yet to be licensed?
Yes, there are additional applicants, some of whom are at different steps in the license application process, and therefore, more licenses are expected to be approved.
Reference
- techweez.com – List of Licensed Digital Lenders in Kenya May 2024
- www.tuko.co.ke – List of Kenya Mobile Loan Lenders Approved by CBK to Operate in 2024
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