Kenya’s digital credit market has expanded to 281 licensed providers, as the Central Bank of Kenya (CBK) approved 29 additional Digital Credit Providers (DCPs). The move comes as licensed lenders continue to serve millions of borrowers through digital platforms.
In a press release dated September 30, 2026, CBK said the latest approvals follow the licensing of 25 DCPs announced in July. The regulator has received more than 900 applications since the licensing process began in March 2022, and it has been reviewing the applicants’ business models and ownership structures.
The growth in licensed lenders comes as digital borrowing remains significant in Kenya. As of August 2026, licensed DCPs had granted 9,596,509 loans valued at KSh165.1 billion.
The lenders offer different types of credit, including education loans, development loans and short-term personal loans. They also provide asset-financing and business loans, while many conduct their lending through digital channels such as USSD codes.
CBK said its review process has focused on business models, consumer protection and the fitness and propriety of proposed shareholders, directors and management. This is intended to ensure that providers comply with the law and protect customers.
“The focus of the engagements with the DCPs has been inter alia business models, consumer protection and fitness and propriety,” CBK said.
The licensing drive follows concerns over unregulated digital lenders and their treatment of borrowers. CBK said the oversight was prompted by public concerns about high costs, unethical debt collection practices and misuse of personal information.
The regulator is also asking applicants who have not completed their documentation to submit the outstanding requirements. However, some applicants remain at different stages of the review process.
CBK said the public can report unregulated digital credit providers through its designated email address. It added that the licensing and oversight framework is aimed at safeguarding customers as digital lending continues to grow.
“Other applicants are at different stages in the process, largely awaiting the submission of requisite documentation,” the CBK statement said.