MOBILE LENDERS RECEIVES ANOTHER SHOCKING NEWS FROM CBK

The Central Bank of Kenya (CBK) has warned all unregulated digital credit providers(DCPs) that there will no extension to the licensing deadline of September 17th 2022.

All previously unregulated DCPs are required to apply to the CBK for a license within six months, beginning March 18th 2022 or fold their operations.

In a statement, CBK said two months have elapsed since publication of the Digital Credit Providers Regulations 2022 and not all DCPs have made their application to be licensed.

CBK said all unregulated DCPs now have four months to the September deadline and that those unregulated players should apply in good time as no extension will be granted after the application deadline.

CBK licensing requirements for digital credit providers
The list of licensing requirements for a DCP includes approval of its name, after which the applicant proceeds to incorporate a limited liability company with the registrar of companies using the approved name.

Directors, Chief Executive, Senior Officers and Significant Shareholders of the DCP must also undergo a fit and proper test by providing information about themselves to the CBK.

CBK also requires all DCPs to provide a Certificate of Incorporation, Memorandum and Articles of Association of the applicant and that of any significant shareholder.

The DCP must also provide details of its ICT system to be used in operations and an independent audit of the platform; delivery channels to be deployed as well as terms and conditions of credit products and services which the applicant intends to provide.

The applicant must also furnish CBK with agreements it has with telcos and other service providers for provision of channel or platform for provision of the credit product.

This is in addition of a long list that includes such details as description and source of funds to be invested by the applicant, pricing model and parameters, certificate of good conduct, tax compliance certificate and CRB report for each shareholder, director and senior officer.

By Kenyan Wall Street