More loan apps have rushed to the Central Bank of Kenya to get their licenses after Google recently removed hundreds of digital lending apps from the Play Store in Kenya. This is after the Alphabet-owned company implemented a new policy that requires digital lenders to submit proof of a license in response to Kenya’s Digital Credit Providers regulations that require entities providing loans digitally to acquire licenses from the country’s Central Bank.
It is not immediately clear how many loan apps have been blacklisted by Google as they were unavailable for comment. However, a spot check by TechCrunch showed that nearly 500 apps previously in the finance category on Play Store, including MoKash and Okash, had been taken down. TechCrunch had established that 657 apps were listed in the finance category, which features loans, banking, and investing apps. Today, only 198 apps are listed in the category.
The Central Bank of Kenya has since approved 10 more digital credit providers, pushing the total number of registered entities to 32.
In 2021, former President Uhuru Kenyatta assented to the Central Bank Amendment Bill, 2021, allowing the CBK to regulate non-deposit-taking credit providers. This gave CBK the power to suspend any DCP that breaches data confidentiality by pursuing borrowers and charging high-interest rates.
List of the 32 Licensed Loan Apps in Kenya
The Central Bank of Kenya has approved DCPs such as
- Tala Inventure Mobile Limited,
- Letshego Kenya Ltd,
- MFS Technologies Limited
- Sevi Innovation Limited,
- Tenakata Enterprises Limited,
- Umoja Fanisi Limited,
- Zanifu Limited.
- Natal Tech Company Limited,
- Ngao Credit Limited,
- Pezesha Africa Limited
- Anjoy Credit Limited,
- Asante FS East Africa Limited,
- Colkos Enterprises Limited,
- EDOMX Limited,
- Extended Money Service Limited,
- Fourth Generation Capital Limited,
- Jumo Kenya Limited,
- Ceres Tech LTC,
- Getcash Capital,
- Giando Africa LTD (Flasg Credit Africa),
- Jijenge Credit,
- Kweli Smart solutions,
- M-KOPA Loan Kenya LTD,
- Mwanzo Credit LTD
- Mycredit Ltd
- MyWagepay LTD
- Rewot Ciro LTD
- Zenka Digital
- Okolea International
- Risine Credit
- Little Pesa
- Extend Money Service
CBK had stated it had received 401 applications since March 2022 and was 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 new policy implemented by Google will have a significant impact on the digital lending industry in Kenya. The removal of loan apps from the Play Store will make it more difficult for consumers to access credit. However, it will also protect consumers from predatory lending practices.
Discover more from Techspace Africa
Subscribe to get the latest posts sent to your email.