The Central Bank of Kenya (CBK) has licensed 25 additional Digital Credit Providers (DCPs), raising the total number of approved digital lenders to 252 as it steps up regulation of the fast-growing sector.
The latest approvals, announced on Tuesday, July 14, follow the licensing of 32 digital lenders in April and form part of the regulator's efforts to weed out rogue operators and strengthen consumer protection.
CBK said it has received more than 800 applications since the licensing framework came into effect in March 2022 and has been working with applicants to ensure they meet the required regulatory standards.
The regulator said its review process focuses on business models, consumer protection measures and the fitness and propriety of proposed shareholders, directors and management teams.
"This is to ensure adherence to the relevant laws and, importantly, that the interests of customers are safeguarded," CBK said in a statement.
The central bank noted that licensed digital lenders mainly offer credit through digital platforms, including mobile applications and Unstructured Supplementary Service Data (USSD) services.
Their products include education loans, development loans, short-term personal loans, asset financing and business loans.
CBK said the sector has continued to register significant growth, with licensed digital lenders issuing 8.37 million loans worth Sh150.56 billion as of May 2026.
The regulator said the newly licensed firms bring the number of authorised DCPs to 252, adding that the list of the 25 approved lenders has been published on its website.
CBK noted that many other applicants remain at different stages of the licensing process, with most awaiting submission of the required documentation.
It urged the applicants to submit the outstanding documents promptly to facilitate completion of the review process.
The regulator also called on the public to report unregulated digital lenders through its email address to support enforcement efforts against illegal operators.
The licensing regime was introduced following widespread public complaints over the conduct of unregulated digital lenders.
According to CBK, the move was prompted by concerns over predatory lending practices, including excessive lending costs, unethical debt collection methods and the misuse of borrowers' personal information.
Since the introduction of the licensing framework, the regulator has intensified oversight of the sector to promote responsible lending, improve transparency and restore public confidence in digital financial services.
CBK said it would continue working with other regulators and government agencies to ensure all digital credit providers comply with the law while safeguarding the interests of borrowers.
