Jijenge Credit Limited under the wise and able leadership of Peter Macharia Kamau has expressed confidence with the central bank of Kenya for regulating Digital lenders
“The Central Bank of Kenya (CBK) has licensed 19 extra digital credit providers (DCP), pushing the total number of registered firms nationwide to 51.
Already, CBK has received a total of 480 applications for licensing as firms rush to be compliant with Section 59(2) of the CBK Act.
Some of the firms registered include Little Pesa Limited, Lipa Later Limited, Maralal Ledger Limited, M-Kopa Loan Kenya Limited, and Ngao Credit Limited, among others.
“CBK has received 480 applications since March 2022 and has worked closely with the applicants in reviewing their applications,” CBK says in a statement.
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The regulator has so far engaged other regulators and agencies, such as the Office of the Data Protection Commissioner, on the licensing process.
“The focus of the engagements has been inter alia on business models, consumer protection and fitness and propriety of proposed shareholders, directors, and management,” the CBK stated.
“This is to ensure adherence to the relevant laws and importantly that the interests of customers are safeguarded,” it added.
CBK went on to add that other applicants are at different stages in the registration process, largely awaiting the submission of the requisite documentation.
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“We urge these applicants to submit the pending documentation expeditiously to enable completion of the review of their applications.”
Former President Uhuru Kenyatta in 2021 assented to the Central Bank Amendment Bill, 2021, allowing CBK to regulate non-deposit-taking credit providers.
The Bill gave CBK the power to suspend any DCP that breaches data confidentiality by pursuing borrowers as well as high interest rates.
Jijenge CEO Peter Kamau noted:
“This is an excellent move by cbk to register and regulate an additional 19 DCPs.It will increase competition thereby reducing the cost of credit and improving customer service levels.It will also increase financial services deepening in the rural areas and unbanked MSMEs.
It’s an excellent initiative and I fully support CBK on this.”
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