Car logbook loans provider Mogo Auto Limited is among seven new recipients of a digital credit provider licence from the Central Bank of Kenya (CBK).
CBK announced the licensing of an additional seven digital credit providers (DCPs), bringing their number to 58.
Other recipients of the licences are Ismuk Credit Limited, Mint Credit Limited, Payablu Credit Limited, Progressive Credit Limited, Stride Credit Limited and ED Partners Africa Limited.
The CBK says it has received more than 550 applications since March 2022 and that it is working closely with the applicants in reviewing their applications.
“Additionally, CBK has engaged other regulators and agencies pertinent to the licensing process, including the Office of the Data Protection Commissioner,” the banking regulator said in a statement.
The lengthy approval processes for the licensees have been occasioned by the deep interrogation of business models, consumer protection and fitness and propriety of proposed shareholders, directors and management.
“This is to ensure adherence to the relevant laws and importantly that the interests of customers are safeguarded,” CBK added.
The licensing and oversight of the digital credit providers was a result of public concerns about the actors' predatory practices, including exorbitant costs, unethical debt collection practices and the abuse of personal information.
