CBK Licenses 25 More Digital Credit Providers as Digital Lending Hits New Milestone
Kenya’s digital lending sector has received another boost after the Central Bank of Kenya (CBK) licensed 25 additional Digital Credit Providers (DCPs), increasing the number of approved lenders to 252 as the regulator continues tightening oversight of the fast-growing industry.
The latest approvals were granted under Section 59(2) of the Central Bank of Kenya Act and come just months after CBK approved another 32 Digital Credit Providers in April 2026, reflecting the regulator’s ongoing efforts to formalise Kenya’s digital lending market.
CBK said it has received more than 800 licence applications since March 2022 and has continued reviewing each applicant against regulatory requirements before granting approval.
According to the central bank, the assessment process focuses on business models, consumer protection measures and the suitability of proposed shareholders, directors and management teams to ensure compliance with the law and safeguard customers.
The regulator also acknowledged the cooperation shown by applicants throughout the licensing process, as well as the support received from other regulators and government agencies involved in the review exercise.
Digital Credit Providers have become an increasingly important source of financing for millions of Kenyans by offering loans through digital platforms, including Unstructured Supplementary Service Data (USSD) channels.
Their products range from education loans and business financing to asset-financing facilities, development loans and short-term personal loans, providing faster access to credit for individuals and businesses.
The rapid growth of the sector is reflected in the latest figures released by CBK. As of May 2026, licensed Digital Credit Providers had issued more than 8.37 million loans worth a combined Sh150.56 billion, underlining the expanding role of digital lending in improving access to financial services across Kenya.
Despite the latest approvals, CBK noted that many licence applications remain under review, with several applicants yet to submit the required documentation.
The regulator urged those applicants to provide the outstanding documents promptly to enable completion of the licensing process.
CBK also encouraged members of the public to report any unregulated Digital Credit Providers through its dedicated email channel as part of efforts to protect borrowers from illegal lending operations.
According to CBK, regulation of Digital Credit Providers was introduced following widespread public complaints against unregulated firms accused of predatory lending practices, including excessive loan charges, unethical debt collection methods and misuse of customers’ personal information.
The central bank said continued licensing and supervision of digital lenders is aimed at promoting responsible lending practices, strengthening consumer protection and boosting confidence in Kenya’s digital financial services sector.
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