The Central Bank of Kenya (CBK) has licensed an additional 25 Digital Credit Providers (DCPs), raising the total number of licensed firms to 252 as part of ongoing efforts to regulate the digital lending sector and strengthen consumer protection.
The licensing, announced on Tuesday, is pursuant to Section 59(2) of the Central Bank of Kenya Act and follows the approval of 32 DCPs in April 2026.
CBK said it has received more than 800 applications since March 2022 and has been working closely with applicants to assess their business models, consumer protection measures, and the fitness and propriety of shareholders, directors and management teams before granting licences.
The regulator noted that the review process is aimed at ensuring compliance with relevant laws while safeguarding the interests of customers.
Digital Credit Providers mainly offer loans through digital platforms, including Unstructured Supplementary Service Data (USSD) channels. Their products include education loans, development loans, short-term personal loans, asset financing and business loans.
According to CBK, licensed DCPs had disbursed more than 8.37 million loans worth KSh150.56 billion by May 2026, highlighting the growing role of digital lending in expanding access to credit.
The central bank said other applications remain under review, with many awaiting submission of the required documentation. It urged the affected applicants to submit the outstanding documents promptly to facilitate completion of the licensing process.
CBK also encouraged members of the public to report unregulated digital lenders through dcps@centralbank.go.ke.
The licensing and supervision of Digital Credit Providers were introduced following widespread public complaints over predatory lending practices by unregulated firms, including excessive borrowing costs, unethical debt collection methods and misuse of customers’ personal information.
