CBK Adds 32 Digital Lenders As Kenya’s Credit Market Moves Further Under Oversight
The latest CBK approvals push Kenya’s pool of licensed digital credit providers to 227 as oversight continues to widen
The Central Bank of Kenya has licensed 32 additional digital credit providers, pushing the total number of approved lenders in Kenya to 227 as of April 2026. The approvals, issued under Section 59(2) of the CBK Act, extend a licensing process that began in March 2022 and has since drawn more than 800 applications.
The latest batch builds on 42 licenses granted in December 2025, taking the market from 195 to 227 regulated operators as the CBK continues to formalize a sector that had grown faster than oversight.
A Mobile-First Lending Market, Now Under Rules
Digital credit providers operate largely through mobile channels, including apps, web platforms, and USSD services, offering products that range from short-term personal loans to business and asset financing.
By February 2026, licensed firms had issued 7.5 million loans valued at Ksh.133.5 billion, underscoring their role in extending credit beyond traditional banking channels.
Licensing Now Tied to Conduct, Not Just Entry
The CBK’s review process has centered on business models, consumer protection, and the suitability of shareholders and management. The regulator has taken a structured approach, engaging applicants to address compliance gaps before approval.
That oversight now carries specific obligations. Licensed lenders must meet requirements on data confidentiality, transparent disclosure of loan costs, and fair debt collection practices. They are also subject to anti–money laundering controls, including verification of funding sources, and limits on how borrowers are listed with credit reference bureaus.
“The licensing and oversight of digital lenders was driven by concerns over predatory practices and the abuse of customer data.”
Backlog Persists as Applications Move in Stages
A significant number of applicants remain under review, many pending submission of required documentation. The CBK has urged firms to complete filings to enable final decisions.
The regulator has published a full directory of licensed providers, giving borrowers a clearer way to distinguish compliant lenders from unregulated operators.
Consumer Complaints Still Shape the Framework
The licensing regime traces back to complaints over high borrowing costs, aggressive recovery tactics, and misuse of personal data by unregulated lenders. Those concerns continue to define how the CBK approaches supervision, with licensing functioning as both a screening tool and an enforcement mechanism.
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