The Central Bank of Kenya (CBK) has licensed an additional 27 Digital Credit Providers (DCPs), bringing the total number of licensed digital lenders in the country to 153. The announcement, made on Thursday, September 4, follows the licensing of 41 DCPs in June 2025. The regulator confirmed that the names of the newly-licensed providers are now available on CBK’s official website.
According to the CBK, the licensing exercise was conducted under Section 59(2) of the Central Bank of Kenya Act and forms part of ongoing efforts to safeguard consumers and promote ethical lending practices within the financial technology sector. Since March 2022, the CBK has received over 700 applications from digital lenders seeking regulatory approval. Each application undergoes a rigorous evaluation process, assessing factors such as business models, governance structures, shareholder suitability, and compliance with existing regulations.
The newly-licensed DCPs offer a variety of loan products, including personal loans, business financing, education loans, and development credit. These loans are typically disbursed via mobile platforms and USSD codes, making access to credit convenient for millions of Kenyans. As of June 2025, licensed DCPs had issued approximately 5.5 million loans valued at around Ksh76.8 billion, demonstrating the sector’s rapid growth and increasing role in financial inclusion.
The move to license and regulate digital lenders comes in response to widespread public concerns over predatory lending practices. Prior to regulation, some unlicensed providers engaged in unethical practices, including charging exorbitant interest rates, harassing borrowers during debt collection, and misusing personal data. By licensing DCPs, the CBK aims to ensure that digital lenders adhere to consumer protection standards and maintain ethical conduct in their operations.
While several applications remain under review, the CBK has urged pending applicants to submit the required documentation promptly to expedite the licensing process. The regulator emphasized that licensed DCPs are expected to operate transparently, treat borrowers fairly, and comply fully with regulatory requirements.
This latest move underscores CBK’s commitment to enhancing oversight of Kenya’s growing digital lending sector while safeguarding the interests of consumers and promoting a fair, sustainable financial ecosystem.
