The Central Bank of Kenya (CBK) has licensed 25 additional Digital Credit Providers (DCPs), increasing the total number of approved digital lenders in the country to 252 as it continues to tighten regulation of the rapidly expanding digital lending industry.
The latest approvals, announced on Tuesday, July 14, come just three months after CBK licensed another 32 digital lenders in April. The move is part of the regulator’s ongoing efforts to eliminate illegal lending platforms, strengthen consumer protection, and promote responsible digital lending.
Over 800 Applications Received Since 2022
CBK revealed that it has received more than 800 licence applications since the Digital Credit Providers licensing framework came into force in March 2022.
According to the regulator, each applicant undergoes a comprehensive review process to ensure compliance with the law before receiving approval.
The assessment focuses on:
- Business models
- Consumer protection measures
- Governance structures
- Fitness and propriety of shareholders
- Directors and senior management
In a statement, CBK said the rigorous review process is designed to ensure that only qualified lenders operate in Kenya.
“This is to ensure adherence to the relevant laws and, importantly, that the interests of customers are safeguarded,” CBK said.
Digital Lending Sector Continues to Grow
CBK noted that licensed Digital Credit Providers primarily offer loans through:
- Mobile applications
- USSD platforms
- Other digital channels
Their products include:
- Education loans
- Business loans
- Development loans
- Short-term personal loans
- Asset financing
The regulator said the digital lending market has continued to record impressive growth.
As of May 2026, licensed lenders had issued:
- 8.37 million loans
- Worth Sh150.56 billion
The newly approved firms now raise the number of licensed Digital Credit Providers to 252, with the full list of approved lenders published on the CBK website.
Many Applicants Still Awaiting Approval
CBK disclosed that many applications remain under review, with several applicants yet to submit the required documentation.
The regulator urged applicants to provide the outstanding information promptly to speed up the licensing process.
Public Asked to Report Illegal Digital Lenders
CBK also encouraged Kenyans to report unregulated digital lending platforms through its official email channels to support enforcement against illegal operators.
The licensing framework was introduced after widespread complaints from borrowers over the conduct of unregulated lenders.
Why CBK Introduced the Licensing Framework
According to the regulator, the new licensing regime was necessary to address growing concerns about predatory lending practices, including:
- Excessively high lending charges
- Harassment during debt collection
- Misuse of customers’ personal data
- Lack of transparency in loan terms
Since the regulations took effect, CBK has intensified supervision of digital lenders to improve accountability, promote responsible lending, and restore confidence in Kenya’s digital financial services sector.
The central bank reaffirmed that it will continue working with other regulators and government agencies to ensure all Digital Credit Providers comply with the law while protecting the interests of borrowers.
FAQs
How many Digital Credit Providers are now licensed in Kenya?
The Central Bank of Kenya has licensed 252 Digital Credit Providers following the approval of 25 additional firms.
Why is CBK licensing digital lenders?
The licensing framework aims to protect consumers from predatory lending practices, improve transparency, safeguard personal data, and ensure only compliant lenders operate in Kenya.
What types of loans do licensed digital lenders offer?
Licensed Digital Credit Providers offer education loans, business loans, development loans, personal loans, and asset financing through mobile apps and USSD platforms.
How many digital loans have licensed lenders issued?
As of May 2026, licensed Digital Credit Providers had disbursed 8.37 million loans worth Sh150.56 billion across Kenya.