The Central Bank of Kenya (CBK) has licensed an additional 32 digital credit providers (DCPs), raising the total number of approved lenders to 227 in a move aimed at strengthening oversight and consumer protection in the fast-growing digital lending sector.
In a press statement issued on April 14, 2026, the regulator said the latest approvals were granted pursuant to Section 59(2) of the CBK Act, marking another milestone in efforts to formalize and regulate the industry.
“This brings the number of licensed DCPs to 227 following the licensing of 42 DCPs announced in December 2025,” CBK said.
The central bank noted that it has received more than 800 applications since March 2022, reflecting strong interest in Kenya’s digital lending space.
It added that it has been working closely with applicants to ensure compliance with regulatory standards before granting approval.
“The focus of the engagements with DCPs has been inter alia on business models, consumer protection and fitness and propriety of proposed shareholders, directors, and management,” CBK stated.
According to the regulator, the licensing process is designed to ensure adherence to the law while safeguarding the interests of customers, particularly in a sector that has previously been marred by complaints.
Digital credit providers in Kenya primarily operate through mobile platforms, including USSD codes, offering a range of products such as education loans, development loans, short-term personal credit, asset financing, and business loans.
The CBK revealed that as of February 2026, licensed DCPs had issued 7.5 million loans valued at KSh133.5 billion, underlining the sector’s growing significance in expanding access to credit.
The regulator emphasized that the licensing framework was introduced in response to widespread public concerns over the conduct of unregulated lenders.
“The licensing and oversight of DCPs… was precipitated by concerns raised by the public about the predatory practices of the unregulated DCPs,” CBK said.
It cited key issues including high borrowing costs, unethical debt collection methods, and the misuse of personal data as among the factors that necessitated tighter controls.
CBK also called on applicants still undergoing the review process to expedite submission of required documentation to facilitate timely consideration of their applications.
“We urge these applicants to submit the pending documentation expeditiously to enable completion of the review of their applications,” the statement added.
At the same time, the regulator encouraged members of the public to report unregulated digital lenders, reinforcing its commitment to cleaning up the sector.
“Reports by the public on unregulated DCPs can be sent through dcps@centralbank.go.ke,” CBK said.
The expansion of licensed digital lenders is expected to enhance trust and stability in Kenya’s credit market, particularly among mobile-based borrowers who have increasingly relied on digital platforms for quick access to loans.