Kenya’s regulated digital lending industry has crossed the KSh150 billion mark after the Central Bank of Kenya (CBK) licensed an additional 25 Digital Credit Providers (DCPs), bringing the total number of licensed firms to 252.
According to the CBK, licensed digital lenders had issued 8.37 million loans worth KSh150.56 billion by the end of May 2026.
The regulator said it has received more than 800 licence applications since the licensing framework came into effect in March 2022. While 252 firms have now secured licences, hundreds of applications remain under review, with many awaiting the submission of required documentation.
CBK noted that its review process extends beyond financial capability to include business models, consumer protection measures and the fitness and propriety of shareholders, directors and management.
Digital Credit Providers are a key part of the growing digital financial services ecosystem in Kenya. Most of these providers offer loans through digital channels such as mobile apps and USSD platforms.
The licensing regime was introduced following widespread public complaints about unregulated lenders. Most of these employed predatory lending practices, unethical debt collection methods and the misuse of borrowers’ personal information. CBK has urged members of the public to report unlicensed digital lenders as it continues to tighten oversight of the sector.
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