The Central Bank of Kenya (CBK) has licensed an additional 25 Digital Credit Providers (DCPs), bringing the total number of approved digital lenders to 252 as the regulator steps up oversight of the fast-growing digital lending sector and strengthens consumer protection measures.
The latest approvals, announced on Tuesday under Section 59(2) of the Central Bank of Kenya Act, come three months after CBK licensed 32 digital lenders in April 2026. The regulator said the move is part of an ongoing effort to ensure that digital lenders comply with legal requirements while safeguarding the interests of borrowers.
Since the licensing framework came into force in March 2022, the Central Bank has received more than 800 applications from firms seeking approval to operate as Digital Credit Providers.
In a statement, CBK said it had worked closely with applicants throughout the review process, assessing their business models, governance structures and consumer protection measures before granting licences.
"The focus of the engagements with DCPs has been inter alia on business models, consumer protection and fitness and propriety of proposed shareholders, directors, and management. This is to ensure adherence to the relevant laws and importantly that the interests of customers are safeguarded," the regulator said.
The Central Bank noted that licensed digital lenders primarily issue loans through digital platforms, including Unstructured Supplementary Service Data (USSD) codes, offering a range of products such as education loans, development loans, short-term personal loans, asset financing and business loans.
The sector has continued to record significant growth. According to CBK, licensed Digital Credit Providers had, by May 2026, issued more than 8.37 million loans valued at Sh150.56 billion, underscoring the increasing reliance on digital credit by individuals and businesses across the country.
While announcing the new licences, the regulator said several other applications remain under review, largely because applicants are yet to submit the required documentation.
"We urge these applicants to submit the pending documentation expeditiously to enable completion of the review of their applications," CBK said.
The regulator also encouraged members of the public to report unlicensed digital lenders, reaffirming that the licensing framework was introduced following widespread complaints about unregulated operators.
"The licensing and oversight of DCPs... was precipitated by concerns raised by the public about the predatory practices of the unregulated DCPs, and in particular, their high cost, unethical debt collection practices, and the abuse of personal information," the statement read.