The Central Bank of Kenya (CBK) has announced that it has granted operating licenses to an additional 42 Digital Credit Providers (DCPs).
This move now raises the total number of approved lenders operating in the country to 195 as regulators intensify efforts to clean up Kenya’s fast-growing digital lending space.
In a statement issued on Tuesday, December 30, 2025, CBK said the new approvals were granted under Section 59(2) of the Central Bank of Kenya Act, following a rigorous review process focused on consumer protection, governance, and compliance with financial laws.
“The Central Bank of Kenya (CBK) announces the licensing of an additional 42 Digital Credit Providers (DCPs). This is pursuant to Section 59(2) of the Central Bank of Kenya Act (CBK Act). This brings the number of licensed DCPs to 195 following the licensing of 27 DCPs announced in September 2025,” the statement reads in part.
The licensing follows years of public outcry regarding shylock-like digital apps. Before the 2022 regulatory framework, many unregulated lenders were notorious for predatory interest rates, debt shaming and data privacy breaches
In its Tuesday statement, the CBK emphasized that the new licensees had been thoroughly vetted for their business models, governance structures, and consumer protection mechanisms.
‘’This is to ensure adherence to the relevant laws and, importantly, that the interests of customers are safeguarded. We acknowledge the efforts of the applicants and the support of other regulators and agencies in this process.’’ CBK stated.
DCPs primarily conduct their lending activities digitally, including through Unstructured Supplementary Service Data (USSD) codes. Loan products include education loans, development loans, short-term personal loans, asset-financing and business loans. As at November 2025, CBK says licensed DCPs had granted 6.6 million loans valued at $851.2 million (Ksh 109.8 billion).
The regulator notes that it has received over 800 applications since March 2022.
The latest licensing comes just three months after CBK approved 27 other digital lenders in September.
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