The Central Bank of Kenya has licensed 29 additional digital credit providers (DCPs), increasing the number of regulated digital lenders to 281 as the regulator tightens oversight of the rapidly expanding mobile lending market.
The latest licensing brings the number of DCPs approved by CBK to 281, up from 252 after the regulator licensed 25 providers in July.
CBK said it has received more than 900 applications for digital lending licences since March 2022, with the approval process focusing on lenders’ business models, consumer protection measures and the suitability of their shareholders, directors and management.
Read Also: Central Bank flags widespread regulatory breaches across banks
The regulator said the scrutiny is intended to ensure digital lenders comply with the law while protecting borrowers.
Digital credit providers mainly offer loans through digital platforms, including USSD codes. Their products range from short-term personal loans to education, development, asset-financing and business loans.
The sector has become a significant source of credit for households and businesses. By August 2026, licensed digital lenders had issued 9.6 million loans valued at Sh165.1 billion, according to CBK.
The regulator said other applicants remain at various stages of the licensing process, with many awaiting submission of required documentation.
CBK has urged the applicants to provide the outstanding documents to allow the regulator to complete its review.
The licensing regime was introduced following complaints over the conduct of unregulated digital lenders, particularly high lending costs, aggressive debt collection practices and misuse of customers’ personal information.
CBK said members of the public can report unregulated digital credit providers to the regulator.
The latest licensing round therefore expands the pool of lenders operating under CBK oversight as the regulator continues to bring digital credit providers into the formal regulatory framework.
