Kenya approves 10 digital lenders in clean-up

Kenya's central bank has licensed 10 digital money lending companies in a move intended to lock out rogue players.

The regulator said another 278 that had applied for clearance had not met the required standards.

Digital-lending apps have established a solid footing in the country, some backed by huge venture capital groups in Western and Asia markets.

But their presence has raised concern because they are largely unregulated.

The central bank had given a six-month window for the lenders to apply for licences, which closed on 17 September.

Surprisingly, the leading lenders are not on the list of 10 announced.

The regulator says the hundreds of applications are still being processed, promising to shut down any players that will not comply.

The clean-up is part of a new law that gave the central bank powers to regulate mobile lending companies. It is aimed at protecting borrowers from exploitation of private data as well as being charged exorbitant interest rates.

This article originally appeared in BBC News

Photo: AFP