The Central Bank of Kenya has licensed 27 more Digital Credit Providers, raising the total number of approved lenders in the country to 153.
The announcement, made on Thursday, September 4, 2025, comes only three months after 41 firms were cleared in June 2025.
The digital credit sector has experienced rapid growth in recent years. Since March 2022, the Central Bank has received over 700 applications from companies seeking to operate as digital lenders.
Each application has undergone a rigorous review process, focusing on the business model, the company’s approach to protecting consumers, and the backgrounds of directors, shareholders, and managers.
“As of June 2025, licensed DCPs had disbursed 5.5 million loans worth Ksh 76.8 billion. Other applicants are at different stages in the process, largely awaiting the submission of requisite documentation,” the CBK said.
The regulator has explained that this thorough process is meant to protect Kenyans from unfair practices. In the past, unregulated lenders were accused of charging high interest rates, harassing borrowers during debt collection, and misusing customer data.
Licensing is intended to bring order and accountability to the fast-growing sector.
Most Digital Credit Providers operate through mobile and USSD platforms. They provide a wide range of loans, including education loans, short-term personal credit, business and development loans, and asset financing.
These services have become popular because of their accessibility and speed, allowing borrowers to receive funds almost instantly.
The CBK has been approving lenders in phases. In October 2024, 27 firms were licensed, and earlier in 2024, seven others received approval.
Previous licensing rounds in 2023 and 2022 also added dozens of lenders to the market as the regulator steadily rolled out the process.
The full list of the newly licensed companies has been published by the Central Bank.
Meanwhile, many other applicants remain in the pipeline, with some waiting to submit outstanding documents before they can be approved.
Leave a comment