Kenya Tightens Grip on Digital Lending as CBK Approves 32 More Credit Providers

The Central Bank of Kenya (CBK)  has announced the licensing of an additional 32 Digital Credit Providers (DCPs), bringing the total number of approved operators in the country to 227. The move is part of ongoing efforts to regulate Kenya’s fast-growing digital lending sector under Section 59(2) of the CBK Act, following an earlier round of 42 licenses issued in December 2025.

Since the licensing framework was introduced in March 2022, CBK has received over 800 applications from digital lenders. The regulator has been working closely with applicants to assess their business models, governance structures, and compliance with consumer protection standards. Particular attention has been placed on ensuring the fitness and propriety of shareholders, directors, and management, as well as safeguarding customer interests.

Digital Credit Providers in Kenya primarily offer loans through digital platforms, including mobile-based channels such as USSD. Their products range from short-term personal loans to education financing, business loans, asset financing, and development loans. As of February 2026, licensed DCPs had issued approximately 7.5 million loans valued at KSh133.5 billion, highlighting the sector’s rapid growth and importance in expanding access to credit.

CBK noted that several other applicants remain at different stages of the approval process, with many yet to submit required documentation. The regulator has urged these applicants to complete their submissions promptly to facilitate the review process.

The licensing and oversight initiative was introduced in response to widespread public concerns over unregulated digital lenders, particularly regarding high borrowing costs, unethical debt collection practices, and misuse of personal data. CBK emphasized that continued regulation is essential to promoting transparency, protecting consumers, and ensuring the long-term sustainability of Kenya’s digital lending ecosystem.