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Popular mobile loan apps Tala and Branch miss first CBK approved lenders

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Popular mobile loan apps Tala and Branch miss first CBK approved lenders

The Central Bank of Kenya, Nairobi, Wednesday, December 30, 2020. PHOTO | DENNIS ONSONGO | NMG

Tala, Branch and 4G Capital are among the popular digital credit providers (DCPs) missing from the regulator’s initial list of people allowed to operate in Kenya.

The Central Bank of Kenya (CBK) on Monday released a list of 10 out of 288 DCPs that have applied for a new license to operate in the country.

The regulator, however, clarified that other providers will be listed as the vetting process continues for those who have met the September 17 application deadline.

“Other applicants are at various stages of this process, largely awaiting the submission of required documentation,” reads part of the statement released by the CBK.

The ten candidates on the CBK’s initial list include Ceres Tech Limited, Getcash Capital Limited, Glando Africa Limited (Trading as Flash Credit Africa), Jijenge Credit Limited and Kweli Smart Solutions Limited.

Others include Mwanzo Credit Limited, MyWagepay Limited, Rewot Ciro Limited, Sevi Innovation Limited and Sokhela Limited.

The use of mobile loans has grown exponentially in recent years as low-income households have been attracted to easily accessible mobile loans.

Digital lenders who fail to comply with the strict consumer protection rules introduced under the Digital Credit Providers Regulations, 2021 will be shut down.

Under the new rules, DCPs are required to provide a certificate of incorporation, memorandum and articles of association of the applicant and any significant shareholders.

Mobile phone lenders are also required to disclose the total charges for their loans, including interest rates, late payments and rollover fees, before issuing credit to customers.

President Uhuru Kenyatta last December approved an amendment to the law allowing the central bank to regulate digital lenders, a move that gave the bank the power to curb lenders that violate consumer privacy.

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