KENYA: CENTRAL BANK OF KENYA (DIGITAL CREDIT PROVIDERS) REGULATIONS, 2021
The Central Bank of Kenya (CBK) has published the draft Central Bank of Kenya (Digital Credit Providers) Regulations, 2021 (the Draft DCP Regulations) for the regulation of digital credit providers (DCPs). The Draft DCP Regulations have been published pursuant to the Central Bank (Amendment) Act, 2021 which became effective on 23 December 2021 and gives the CBK powers to license and regulate DCPs. Please see our initial newsflash on the Central Bank (Amendment) Act, 2021 here.
The Draft DCP Regulations provide for licensing requirements, management and reporting requirements, data protection, consumer protection, credit information sharing, anti-money laundering and counter terrorism requirements, prohibited activities and CBK’s supervisory powers, which include the revocation and suspension of DCP licences, among other things.
Comments on the Draft DCP Regulations should be submitted to the CBK by 21 January 2022.
The CBK has also directed existing DCPs to submit their business details to the CBK by 21 January 2022 to facilitate an orderly transition. This is important as existing DCPs are required to apply for licensing within 6 months of the publication of the Regulations.
Bowmans remains available to offer further guidance on the provisions of the Draft DCP Regulations, their impact on your business and submission of comments to the CBK. We are also available to advise on compliance with the new regulations and assist with applications for DCP licences.