The Central Bank of Kenya (CBK) has expanded its oversight of the digital lending industry after licensing 29 more Digital Credit Providers (DCPs), taking the number of regulated lenders to 281.
The new licences were announced on September 30, 2026, under Section 59(2) of the Central Bank of Kenya Act. They follow the approval of 25 other digital lenders in July, as the regulator continues to bring more firms offering digital credit under supervision.
CBK said it has received more than 900 applications for digital credit provider licences since March 2022. The applications are reviewed to establish whether firms meet regulatory requirements before they are allowed to operate.
The review covers applicants’ business models, consumer protection measures and the suitability of shareholders, directors and managers.
The newly licensed providers offer different forms of digital credit, including unsecured supplementary service data (USSD) loans, consumer loans, education loans, development loans and short-term personal loans.
The size of the industry has grown considerably. CBK data shows that licensed DCPs had issued 9,596,509 loans worth Ksh165.1 billion by August 2026, highlighting the growing role of digital lenders in providing credit to consumers and businesses.
The licensing programme was introduced after concerns about the conduct of unregulated digital lenders. CBK has raised concerns over high costs of credit, aggressive debt collection practices and the misuse of customers’ personal information.
Licensed providers are subject to CBK oversight and must comply with rules governing their operations and treatment of customers. The regulatory framework also gives the central bank powers to take action against providers that breach the law.
CBK has urged borrowers to check whether a digital lender is licensed before taking a loan. The regulator maintains a directory of licensed providers that customers can use to verify lenders operating in the market.
The licensing process remains ongoing for some applicants. CBK said it is working with firms that have submitted applications to help them meet the requirements and complete the review process.
The regulator has also called on applicants with outstanding requirements to provide the necessary information to allow their applications to be concluded.
The expansion of the licensed sector comes as digital credit remains an important source of financing in Kenya. CBK’s continued licensing and supervision is aimed at ensuring digital lenders operate within the law while strengthening safeguards for borrowers.
Leave a comment