The Central Bank of Kenya (CBK) has licensed an additional 42 Digital Credit Providers (DCPs), raising the total number of approved firms operating in the country to 195.
In a statement, the CBK said the licensing was conducted in line with Section 59(2) of the Central Bank of Kenya Act. The latest approvals follow the licensing of 27 DCPs announced in September 2025.
The regulator revealed that it has received more than 800 applications since March 2022 and has been engaging applicants throughout the review process. CBK said the assessments focus on business models, consumer protection measures, and the fitness and propriety of proposed shareholders, directors and senior management to ensure compliance with the law and safeguard customers’ interests.
Digital Credit Providers mainly issue loans through digital platforms, including mobile phone-based channels such as USSD codes. Their loan products range from education and development loans to short-term personal credit, asset financing and business loans.
As at November 2025, licensed DCPs had disbursed about 6.6 million loans valued at KSh109.8 billion, underscoring the growing role of digital lending in Kenya’s financial sector.
CBK noted that while 195 firms have now been licensed, other applicants are still at different stages of the approval process, with many awaiting submission of required documentation. The regulator urged these applicants to submit the outstanding information promptly to enable completion of their reviews.
The licensing and oversight of digital lenders were introduced following widespread public complaints about unregulated DCPs, particularly over high borrowing costs, unethical debt collection practices and the misuse of customers’ personal data. CBK said the regulatory framework aims to curb such practices while promoting a safe and transparent digital credit market.
