CBK licenses 29 more digital lenders
The Central Bank of Kenya (CBK) has licensed an additional 29 digital credit providers (DCPs), bringing the total number of regulated digital lenders in the country to 281.
The new approvals, announced on September 30, follow the licensing of 25 DCPs in July 2026 and were issued under Section 59(2) of the Central Bank of Kenya Act.
The regulator said it has received more than 900 applications since March 2022, when it began licensing and supervising digital lenders. Its review has focused on applicants’ business models, consumer protection measures, and the fitness and propriety of proposed shareholders, directors and management.
According to CBK, the process is designed to ensure compliance with the relevant laws and, importantly, to safeguard the interests of customers. The regulator also acknowledged the support of other regulators and government agencies in the vetting process.
Licensed DCPs have become a significant source of credit for Kenyan households and small businesses. As of August 2026, they had disbursed 9,596,509 loans valued at Ksh165.1 billion (about $1.28 billion), an average of roughly Ksh17,200 per loan.
The lenders operate predominantly through digital channels, including mobile apps and Unstructured Supplementary Service Data (USSD) codes. Their products span education loans, development loans, short-term personal loans, asset financing and business loans.
With 281 licences issued against more than 900 applications, a large pool of applicants remains in the pipeline. CBK said the outstanding applicants are at different stages of the process, with most yet to submit the required documentation.
The regulator urged them to file the pending documents promptly to allow it to complete its review.
CBK’s oversight of the sector was introduced in response to widespread public complaints about unregulated digital lenders. These included high borrowing costs, aggressive and unethical debt collection practices, and the misuse of borrowers’ personal information, such as contacting friends and family members listed in a customer’s phonebook to shame them into repaying.
The regulatory framework, established through amendments to the CBK Act, brought digital lenders that do not take deposits under the central bank’s supervision for the first time, requiring them to obtain a licence before operating.
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