The Central Bank of Kenya (CBK) has licensed an additional 41 Digital Credit Providers (DCPs), bringing the total number of licensed providers to 126.
This latest move follows the licensing of 27 DCPs announced in October 2024 and is part of ongoing efforts to regulate Kenya’s rapidly growing digital lending sector.
The licensing is carried out under Section 59(2) of the Central Bank of Kenya Act and comes amid heightened scrutiny of digital lenders, many of which have faced criticism for predatory lending practices, unethical debt collection methods, and misuse of personal data.
Since March 2022, CBK has received over 700 applications from digital lenders seeking to operate legally in the country.
The licensing process has involved close collaboration with applicants, as well as consultations with key regulatory bodies, including the Office of the Data Protection Commissioner.
CBK emphasized that the review process focuses on the business models of applicants, consumer protection measures, and the suitability of proposed shareholders, directors, and management teams.
These checks are aimed at ensuring compliance with existing laws and safeguarding the interests of consumers.
“We acknowledge the efforts of the applicants and the support of other regulators and agencies in this process,” CBK said in a statement.
While 41 providers have now been granted licenses, CBK noted that several other applications are still under review, primarily pending submission of necessary documentation.
The regulator urged remaining applicants to expedite the process to facilitate timely completion of their reviews.
Members of the public have also been encouraged to report unregulated digital lenders by emailing dcps@centralbank.go.ke.
CBK introduced the DCP licensing regime in response to widespread public concerns over the conduct of unregulated digital lenders, particularly regarding high borrowing costs and violations of user privacy.
