The Central Bank of Kenya (CBK) has licensed 29 more digital credit providers, increasing the number of regulated digital lenders in the country to 281. This move is part of the CBK's ongoing efforts to oversee and regulate the digital lending sector. Since 2022, the CBK has received over 900 applications from digital credit providers. The licensing process assesses providers' business models, consumer protection measures, and the fitness of proposed shareholders, directors, and management.
The CBK's assessment process aims to ensure compliance with relevant laws and safeguard customers' interests. Other applications are at different stages of the licensing process, pending submission of required documentation. As of August 2026, licensed digital credit providers had granted 9,596,509 loans valued at Ksh.165.1 billion. This significant growth in digital lending has led to increased scrutiny from the regulator.
According to the CBK's 2025 Bank Supervision Annual Report, outstanding digital credit nearly doubled in one year, rising from Ksh.55.2 billion at the end of 2024 to Ksh.110.1 billion by December 2025. During the same period, the number of licensed digital lenders increased from 85 to 195 after the CBK approved 110 additional providers. This rapid expansion has raised concerns about loan pricing, lending practices, and the use of customer data.
The CBK noted that loan accounts do not necessarily represent individual borrowers, as one customer can have multiple loan accounts. Digital lending has expanded beyond short-term personal loans, with licensed providers offering credit for business, agriculture, education, and asset purchases through mobile applications and USSD platforms. The sector's growth has led to strengthened oversight from the regulator.
The CBK is focusing on transparent pricing, responsible lending, and consumer protection as the sector continues to grow. The regulator's efforts aim to ensure that digital lenders operate fairly and transparently. In July, the CBK licensed 25 digital credit providers, further expanding the number of lenders operating under its oversight.
The digital lending sector in Kenya has experienced significant growth in recent years, with the number of loan accounts increasing from about four million to 6.7 million, representing a growth of roughly 71 percent in one year. This growth has been accompanied by an increase in the number of licensed digital lenders, which now stands at 281.
As the sector continues to evolve, the CBK will likely maintain its focus on ensuring that digital lenders operate in a responsible and transparent manner. The regulator's efforts will aim to balance the growth of the sector with the need to protect consumers and maintain financial stability.
Key points
- The Central Bank of Kenya has licensed 29 additional digital credit providers, bringing the total number of regulated lenders to 281.
- Licensed digital credit providers had granted 9,596,509 loans valued at Ksh.165.1 billion as of August 2026.
- The CBK is strengthening oversight of loan pricing, lending practices, and the use of customer data, with a focus on transparent pricing, responsible lending, and consumer protection.
