The Central Bank of Kenya (CBK) has licensed 42 additional Digital Credit Providers, raising the total number of approved digital lenders operating in the country to 195, as regulators step up efforts to rein in Kenya’s fast-growing digital lending sector.
In a statement seen by Business Today, CBK said the licences were granted under Section 59(2) of the Central Bank of Kenya Act after a rigorous review process.
“The Central Bank of Kenya announces the licensing of an additional 42 Digital Credit Providers,” the regulator said, noting that the move is aimed at strengthening consumer protection and compliance within the sector.
The latest approvals come just three months after CBK licensed 27 digital lenders in September 2025.
“This brings the number of licensed DCPs to 195 following the licensing of 27 DCPs announced in September 2025,” the statement said.
CBK revealed that it has received more than 800 applications since March 2022 and has been working closely with applicants throughout the review process.
“The focus of the engagements with DCPs has been on business models, consumer protection, and the fitness and propriety of proposed shareholders, directors, and management,” CBK said, adding that the goal is to ensure adherence to the law and safeguard customers’ interests.
More applicants
The regulator also urged remaining applicants to move quickly to complete the process. “CBK urges applicants who are at advanced stages of review to submit outstanding documentation promptly to allow for completion of the licensing process,” the statement said.
According to CBK, licensed digital lenders mainly offer credit through digital platforms such as mobile applications and USSD codes.
“DCPs predominantly carry out their lending activities digitally, including through Unstructured Supplementary Service Data codes,” CBK said.
Loan products include short-term personal loans, education and development loans, asset financing, and business loans.
The sector continues to play a major role in expanding access to credit.
“As at November 2025, licensed DCPs had granted 6.6 million loans valued at Ksh109.8 billion,” CBK said, highlighting the importance of digital lenders to individuals and small businesses that often struggle to access traditional bank financing.
The licensing framework was introduced after widespread complaints against unregulated digital lenders accused of charging high interest rates, harassing borrowers, and misusing personal data.
CBK said the new oversight regime is intended to promote transparency, fairness, and accountability across the sector.
“CBK remains committed to fostering a sound, transparent, and consumer-focused digital credit market,” the regulator said, adding that continued licensing and supervision are key to protecting borrowers while supporting responsible financial inclusion.
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