CBK licenses 27 more digital lenders
The Central Bank of Kenya (CBK) has announced the licensing of 27 additional Digital Credit Providers (DCPs), pushing the number of approved lenders in the country to 153.
The move, made under Section 59(2) of the CBK Act, follows a rigorous review process that began in March 2022 after the regulator opened licensing applications for digital lenders. Since then, CBK has received more than 700 applications from firms seeking approval to operate.
According to CBK, the evaluation process has focused on three main areas: business models, consumer protection measures and the “fitness and propriety” of proposed shareholders, directors and management teams. This, the regulator emphasized, is meant to ensure compliance with the law while protecting customers from exploitation.
“The focus of the engagements with DCPs has been inter alia on business models, consumer protection and fitness and propriety of proposed shareholders, directors and management. This is to ensure adherence to the relevant laws and importantly that the interests of customers are safeguarded,” CBK said in a statement.
The licensing comes at a time when digital credit remains one of the fastest-growing financial services in Kenya, offering small, short-term loans through mobile phones and USSD codes. Loan products span education financing, asset acquisition, business support and emergency personal loans.
As of June 2025, licensed digital lenders had disbursed 5.5 million loans valued at KSh 76.8 billion, highlighting the sector’s role in driving financial inclusion and providing credit to households and businesses excluded from traditional banking systems.
CBK first moved to regulate the sector after widespread public outcry over predatory lending practices by unregulated digital lenders. These included excessively high interest rates, unethical debt collection methods such as public shaming and the misuse of borrowers’ personal data.
In March 2022, the Central Bank of Kenya (Amendment) Act came into effect, giving CBK the mandate to license and supervise all digital credit providers. Since then, the regulator has periodically released lists of approved firms, while warning consumers against dealing with unlicensed players.
Thursday’s announcement is the third major licensing round this year. In June 2025, CBK approved 41 new lenders, taking the total at the time to 126. With the additional 27 licensed this week, only about 22 percent of the 700 applicants have been granted approval, underscoring the strict requirements and scrutiny applied.
The regulator however, said several applications remain under review, with most awaiting the submission of outstanding documents. CBK urged these firms to move quickly to complete the process or risk exclusion from the market.
Members of the public were also encouraged to report unregulated lenders through the email dcps@centralbank.go.ke, part of ongoing efforts to protect borrowers from illegal operators.
“Reports by the public on unregulated DCPs can be sent through dcps@centralbank.go.ke,” CBK noted.
The new licenses are expected to expand access to credit while improving consumer safeguards. Licensed lenders must adhere to strict regulations on interest rate disclosure, data privacy and debt collection practices. CBK has also warned that it will take enforcement action against licensed firms found to be engaging in misconduct.
