Giant mobile lender, Tala, has refuted claims that they have been deregistered by the Central Bank of Kenya (CBK) after they missed out on the list released by the bank regulator on part of the verified digital credit providers in Kenya.
“Following the announcement by the Central Bank of Kenya (“CBK”) this morning, we have received a number of inquiries as to why Tala is not listed among the ten applicants now licensed as Digital Credit Providers (“DCP”) by the CBK as at 17 September 2022,” said Tala in a statement.
Tala says that the list that has been released by CBK is not final “and we understand that each application is being reviewed in order of receipt.”
CBK had given Digital Credit Providers (DCPs) until September 17 to obtain the new licenses. The regulator has now ordered DCPs that did not apply for the licenses to cease their operations.
The fresh licensing move came after customers raised the alarm on predatory practices of the unregulated DCPS. This included being pursued by the lenders in shameful ways like accessing their phonebooks and informing the defaulters’ friends and families via contact information.
CBK has also cleared the air on the confusion; “Other applicants are at different stages in the process, largely awaiting the submission of requisite documentation. We urge these applicants to submit the pending documentation expeditiously to enable completion of the review of their application.”
Tala submitted its application for the requisite license in advance of the CBK’s deadline of 17th September 2022, and we are working with the CBK with regard to our application.
“In accordance with the provisions of The CBK Amendment Act, 2021, and The CBK (Digital Credit Providers) Regulations, 2022, Tala shall continue to operate as a digital credit provider pending the issuance of our license by the CBK.
In the meantime, we are committed to serving our customers in accordance with the applicable regulations and working with the CBK pending issuance of our license.”