Digital credit providers in Kenya are regularizing their businesses ahead of Sept. 17 deadline that will see those not registered cease operations, the Central Bank said on Tuesday.
The apex bank noted that a good number of the over 100 digital lenders in the east African nation have registered their businesses following an ultimatum it gave.
“Two months have lapsed since the publication of regulations on digital lending and several digital credit providers have already applied to be licensed,” said the bank in a press release.
The regulator added that it would not extend the deadline when it lapses.
Kenya published the digital credit regulations on March 21 in a bid to control the sector whose operators were accused of exploiting borrowers, engaging in predatory practices and aiding money laundering.
The regulations thus provide a framework for licensing, consumer protection, lending practices, credit information sharing and outline anti-money laundering and financing of terrorism obligation of operators, added the bank. Enditem