The Central Bank of Kenya (CBK) has licensed 42 additional digital credit providers (DCPs), bringing the total number of approved lenders to 195, as part of efforts to regulate a sector once dominated by unregulated players.
The move comes amid public concerns over high costs, unethical debt collection, and misuse of personal data, driven by the rapid expansion of digital lending in Kenya.
In a statement, CBK said the approvals were granted under Section 59(2) of the Central Bank of Kenya Act.
The new licences follow the September licensing of 27 firms and mark continued progress in the regulator’s oversight of the sector, which has received over 800 applications since March 2022.
"The Central Bank of Kenya (CBK) announces the licensing of an additional 42 Digital Credit
Providers (DCPs). This is pursuant to Section 59(2) of the Central Bank of Kenya Act (CBK
Act). This brings the number of licensed DCPs to 195 following the licensing of 27 DCPs
announced in September 2025," CBK said.
The bank noted that each application underwent rigorous review, focusing on business models, consumer protection measures, and the fitness and propriety of proposed shareholders, directors, and management.
CBK said the process ensures compliance with the law and safeguards customer interests.
Digital lenders operate primarily through mobile platforms, including USSD channels, offering a range of products such as education loans, personal credit, asset financing, and business loans.
As of November 2025, licensed DCPs had issued 6.6 million loans valued at Sh109.8 billion, underscoring the sector’s role in household consumption, small business financing, and short-term liquidity.
CBK has made a full list of licensed providers publicly available and urged remaining applicants to submit pending documentation to complete the licensing process.
The regulator also encouraged the public to report unregulated digital lenders through official channels, as part of a broader effort to eliminate illegal operators.
The licensing initiative aims to balance innovation in financial services with stricter consumer protection, holding lenders accountable while promoting transparency and responsible lending practices in Kenya’s rapidly growing digital credit market.
