CBK Adds 25 Digital Lenders as Kenya's Credit Market Keeps Growing

The Central Bank of Kenya (CBK) has licensed 25 additional Digital Credit Providers (DCPs), raising the number of approved digital lenders in the country to 252. The latest approvals extend a licensing exercise that began in March 2022 and mark another step in bringing Kenya’s fast-growing digital lending market under formal oversight.

The announcement comes as regulated providers continue to expand their footprint. According to CBK, licensed digital lenders had issued 8.4 million loans worth KSh150.56 billion by May 2026, illustrating how mobile-based credit has become a significant source of personal, business and asset-financing loans across the country.

The latest approvals follow earlier licensing rounds that have steadily expanded the regulated market. Kenya had 195 licensed digital lenders at the end of 2025. That figure rose to 227 in April before reaching 252 with the latest approvals.

CBK has now received more than 800 licence applications, a reflection of sustained interest in a market where digital credit has become a mainstream financial service rather than a niche fintech product.

The regulator said its review extends beyond registration. Applicants are assessed on their business models, consumer protection measures and the suitability of shareholders, directors and senior management before licences are granted.

Digital lending first gained traction by offering small, instant loans through mobile phones. Today, the market serves a much wider purpose.

Licensed providers now offer personal loans, SME financing, education credit, development loans and asset-financing products through mobile applications and USSD channels. Alternative credit assessments based on digital transaction histories have also broadened access to borrowers who may not meet conventional banking requirements.

That wider role helps explain why digital lending continues to attract new entrants. For many households and small businesses, mobile credit has become part of everyday financial management rather than a product reserved for emergencies.

The expansion has also influenced established financial institutions. Rather than treating fintech firms solely as competitors, many banks now see digital lenders as part of the country’s broader financial ecosystem.

The licensing framework followed widespread concerns over opaque pricing, misuse of customer data and aggressive debt collection practices among unregulated lenders.

CBK says its objective is to strengthen consumer protection while ensuring firms meet governance and compliance standards expected of regulated financial institutions.

That oversight has become more significant as digital lending assumes a larger role in Kenya’s credit market. Mobile platforms can approve loans within minutes, extending formal credit to consumers and businesses that previously had limited borrowing options.

The continued flow of licence applications also suggests that compliance is becoming a prerequisite for growth rather than a barrier to market entry.

The expansion of licensed digital lenders comes as the relationship between banks and fintech companies continues to evolve.

Rather than relying only on in-house digital products, established financial institutions are adding partnerships, acquisitions and venture investments to their strategy. KCB Group strengthened its technology capabilities through the acquisition of a majority stake in fintech firm Riverbank Solutions. NCBA Group has expanded its digital ecosystem around products such as Loop and M-Shwari, while Britam recently committed up to KSh1.9 billion through BetaLab to back fintech and insurtech startups.

Industry leaders have also argued that the future of financial services will depend on collaboration rather than replacement. Fintech companies bring product development speed and digital-first customer experiences, while banks contribute capital, regulatory expertise, established distribution networks and public trust.

That convergence is reshaping Kenya’s credit landscape. Digital lenders are no longer operating on the margins of the financial system, and banks are no longer treating financial technology as a separate market.

With 252 licensed Digital Credit Providers, more than 800 licence applications under review and regulated lenders having issued 8.4 million loans worth KSh150.56 billion, the latest CBK approvals reflect more than an expanding register of firms. They show a market moving into a more mature phase, where access to credit, stronger oversight and collaboration between banks and fintech companies are becoming defining features of Kenya’s digital finance ecosystem.

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