Kenya Licenses 29 More Digital Lenders

The Central Bank of Kenya (CBK) has licensed 29 additional digital credit providers (DCPs), bringing the number of regulated digital lenders in the country to 281.

The approvals, announced on September 30, come two months after the regulator licensed 25 DCPs in July. The latest licences were issued under Section 59(2) of the Central Bank of Kenya Act.

CBK said it has received more than 900 applications since March 2022, when it began licensing and supervising digital lenders following amendments to the law.

The regulator said its assessment focuses on applicants’ business models, consumer protection measures, and the fitness and propriety of proposed shareholders, directors and management.

The expansion of the regulated sector comes as digital lenders continue to play a significant role in providing credit to Kenyan households and businesses.

As of August 2026, licensed DCPs had disbursed 9,596,509 loans worth Ksh165.1 billion, equivalent to about $1.28 billion. The average loan size was approximately Ksh17,200.

The lenders operate mainly through digital channels, including mobile applications and Unstructured Supplementary Service Data (USSD) platforms. Their products include education loans, development loans, short-term personal loans, asset financing and business loans.

Despite the latest approvals, hundreds of applications remain under review. CBK said applicants are at different stages of the licensing process, with most yet to submit the required documentation.

The regulator urged applicants with outstanding documents to submit them promptly to allow the review process to continue.

CBK said the licensing process is intended to ensure compliance with applicable laws while protecting consumers. It also acknowledged the support of other regulators and government agencies involved in vetting applicants.

The central bank began supervising non-deposit-taking digital lenders after amendments to the CBK Act in 2021, following widespread complaints about unregulated lenders.

The complaints included high borrowing costs, aggressive debt collection practices and misuse of borrowers’ personal information, including contacting people in customers’ phonebooks to pressure them to repay loans.

The regulatory framework requires digital credit providers that do not take deposits to obtain a CBK licence before operating in Kenya.