Kenya Expands Regulated Digital Lending With 27 Newly Licensed Providers

The Central Bank of Kenya (CBK)  has announced the licensing of 27 additional Digital Credit Providers (DCPs), bringing the total number of licensed entities to 153. This follows the approval of 41 DCPs in June 2025, marking steady progress in formalizing the sector.

Since March 2022, CBK has received more than 700 applications and has been working closely with applicants to review business models, governance structures, and compliance with consumer protection standards. The licensing process has placed strong emphasis on the fitness and propriety of shareholders, directors, and management, to ensure customer interests are safeguarded in line with relevant laws.

Digital Credit Providers primarily operate through mobile channels such as USSD, offering products that range from short-term personal loans and education loans to business financing and asset-based credit. By June 2025, licensed DCPs had issued 5.5 million loans worth Ksh. 76.8 billion, underscoring their growing role in expanding access to credit in Kenya.

The licensing initiative was introduced to address widespread concerns about predatory practices by unregulated lenders, including high interest rates, misuse of personal data, and unethical debt collection methods. CBK continues to urge pending applicants to complete their submissions promptly and encourages the public to report unlicensed operators via its official email channels.

Through this process, the regulator aims to strengthen oversight, improve transparency, and promote responsible lending within the fast-growing digital credit market.