The Central Bank of Kenya (CBK) has approved 27 additional Digital Credit Providers (DCPs), increasing the total number of licensed lenders to 153. The move comes as part of ongoing efforts to regulate Kenya’s digital lending sector. This process has oftentimes been marred by predatory practices and misuse of personal data.
In a statement issued on Thursday September 4, CBK said it has “received more than 700 applications since March 2022 and has worked closely with the applicants in reviewing their applications.” The regulator explained that the focus of its vetting process has been on business models, consumer protection and the integrity of proposed directors and management teams.
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“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 statement read.
DCPs carry out lending primarily through digital platforms, including Unstructured Supplementary Service Data (USSD) codes. Their products range from education and development loans to short-term personal loans, asset-financing, and business loans. As of June 2025, licensed digital lenders had already disbursed 5.5 million loans worth Ksh.76.8 billion.
CBK noted that while the licensing process has made progress, a number of applicants are still pending due to incomplete submissions. “We urge these applicants to submit the pending documentation expeditiously to enable completion of the review of their applications,” the regulator stated.
The oversight of digital lenders was prompted by public complaints regarding unregulated providers, whose practices were described as exploitative. CBK said licensing was driven 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.
Consumers are now being encouraged to report suspicious or unregulated digital lenders directly to CBK via dcps@centralbank.go.ke. The regulator stressed that proper licensing is essential in restoring confidence and protecting Kenyans who rely on mobile-based loans for day-to-day financial needs.
With the addition of the new firms, CBK emphasized that the digital credit market will now operate under tighter oversight, ensuring that borrowers are treated fairly. “We acknowledge the efforts of the applicants and the support of other regulators and agencies in this process,” the regulator added.
