Kenya: CBK Licenses 25 New Digital Lenders, Pushes Approved Firms to 252

Nairobi — The Central Bank of Kenya (CBK) has licensed 25 additional Digital Credit Providers (DCPs), bringing the total number of approved digital lenders in the country to 252.

The latest approvals are part of an ongoing licensing exercise that began in March 2022 after Parliament placed digital lenders under CBK regulation to address widespread consumer complaints.

According to the regulator, it has received more than 800 licence applications and continues to review submissions.

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CBK said the licensing process has focused on business models, consumer protection measures, and the suitability of shareholders, directors and senior management.

"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," CBK said in a statement.

The regulator added that the process is aimed at ensuring compliance with the law while safeguarding the interests of borrowers.

Before the introduction of the licensing framework, many digital lenders faced criticism over high lending costs, aggressive debt collection practices and misuse of customers' personal data.

Most licensed DCPs offer loans through digital platforms, including mobile applications and Unstructured Supplementary Service Data (USSD) channels, covering products such as personal, business, education, development and asset-financing loans.

CBK data shows that by May 2026, licensed digital lenders had issued 8.4 million loans worth Sh150.56 billion.