The Central Bank of Kenya (CBK) has approved 29 additional Digital Credit Providers (DCPs), significantly expanding the licensed pool of digital lenders in the country. This brings the total number of regulated digital lenders to 281. The approval was announced on September 30, 2026, through an official press release. This move is part of CBK's ongoing efforts to regulate the digital lending sector.
Since March 2022, CBK has processed over 900 applications from prospective digital lenders, scrutinizing business models, consumer protection frameworks, and management fitness. The regulator has engaged closely with each applicant throughout the review process. This rigorous assessment aims to ensure that only suitable applicants are granted licenses to operate in the country.
According to CBK data, licensed DCPs had collectively issued 9,596,509 loans valued at KSh 165.1 billion as of August 2026. The products on offer span a wide range, including education loans, short-term personal loans, asset financing, development loans, and business loans. Most providers operate entirely through digital platforms, including Unstructured Supplementary Service Data (USSD) codes.
The regulator's assessment of applications focused on three core areas: the viability of business models, consumer protection frameworks, and the suitability of proposed shareholders, directors, and management. CBK acknowledged the cooperation of applicants and other regulatory bodies involved in the vetting process. This thorough evaluation process helps to ensure that licensed providers operate fairly and transparently.
Kenyans can access the full list of all the licensed digital lenders in Kenya from the CBK website. The list provides valuable information for borrowers, enabling them to make informed decisions when selecting a digital lender. This transparency is essential in promoting a fair and competitive digital lending market.
A number of applicants are still at various stages of the licensing process, with many awaiting completion of documentation requirements. CBK urged those firms to submit outstanding materials without delay to allow their applications to be finalised. Members of the public who encounter unlicensed digital lenders can report them directly to CBK via [email protected].
The CBK's push to regulate the digital lending sector originated from widespread public complaints about unregulated providers engaging in predatory behaviour. In related news, CBK penalised 33 commercial banks for failing to comply with its Risk-Based Credit Pricing Model (RBCPM), which aims to improve transparency and enable borrowers with stronger credit histories to access lower interest rates.
Key points
- The Central Bank of Kenya has licensed 29 new Digital Credit Providers, bringing the total number of regulated digital lenders to 281.
- Licensed digital lenders have collectively issued over 9.5 million loans worth KSh 165.1 billion as of August 2026.
- The regulator's assessment of applications focuses on business model viability, consumer protection, and management fitness.
