‘Stuck’ digital lenders withheld information

Patrick Njoroge, Governor of the CBK. [Wilberforce Okwiri, Standard]

The Central Bank of Kenya (CBK) now says companies excluded from the list of approved digital lenders have not fully complied with the new licensing rules and risk being excluded altogether.

CBK Governor Patrick Njoroge revealed that most of the players who did not get clearance failed to provide crucial details about their operations.

“There were 288 of these people who came to see us. We approved 10.. partly because the others were playing Maneno (Games). You ask them questions they don’t answer,” Dr Njoroge said on Monday.

The CBK boss, who was answering questions at an induction session for MPs in Nairobi, added: “Now they have to play by the rules. We’re not going to rush them (through the approval process) because they have a big name or any of those things.

Sources said separately The standard The CBK was particularly interested in the source of funding for companies that applied for licenses during the selection process.

The financial regulator decided on Monday to tighten the noose on the previously unregulated market digital lenderswho have flooded the market with fast loans.

They are notorious for their predatory lending behaviors and debt shaming.

The CBK announced on Monday that it had only approved ten of the 288 companies that had applied for licenses to provide digital loans.

Tala, Zenka, Branch and Okash are among existing large digital lenders missing from an initial list of approved CBK-approved mobile loan providers.

The 10 companies that floored the “big boys” to get the coveted green light from CBK are mostly small and have only been in the market for a few years.

The CBK has urged applicants who have not yet received approval to submit the missing documents to enable the completion of the review of their applications.

Those approved are Ceres Tech, Getcash Capital, Giando Africa, Jijenge Credit and Kweli Smart Solutions.

The others are Mwanzo Credit, MyWagepay, Rewot Ciro, Sevi Innovation and Sokohela.

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