The Central Bank of Kenya (CBK) has licensed 281 digital credit providers as of September 2026, with 29 new lenders added in its latest regulatory update. This move aims to regulate the mobile loan market, which has grown rapidly in Kenya. The CBK received over 900 applications since March 2022, when formal supervision of the sector began. The licensed lenders have granted 9,596,509 loans worth Sh165.1 billion as of August 2026.
The CBK introduced a dedicated licensing regime for digital lenders after complaints about high borrowing costs, aggressive debt collection, and misuse of personal information by previously unregulated providers. The Digital Credit Providers Regulations took effect on March 18, 2022, requiring lenders to obtain a CBK license to operate. The regulations aim to eliminate predatory practices, unethical debt collection, and the misuse of personal customer data.
The regulations require digital lenders to provide borrowers with clear information before a loan is taken, including the loan amount, charges, interest rate, and repayment dates. The rules also restrict misleading advertising, ensuring that lenders do not advertise credit products using false or deceptive information. The CBK publishes a directory of licensed Digital Credit Providers, encouraging consumers to check providers against its licensed list.
Data regulation is a key concern for the CBK, as digital lending often involves information supplied through mobile phones. The regulatory framework addresses the abuse of personal information, alongside consumer protection, credit-information sharing, and market-conduct requirements. The objective is to bring lending practices, customer treatment, and information handling under regulatory oversight.
The licensed digital lenders offer a range of products, including short-term personal loans, education loans, development loans, asset financing, and business credit. Some operate through mobile applications, while others use USSD and other digital channels. The growing register of licensed lenders does not mean that all 281 companies have an identical business model.
For borrowers, the practical calculation remains the same before taking any digital loan: How much is being borrowed, how much will actually be repaid, when is it due, and is the provider licensed? The CBK encourages consumers to check providers against its licensed list and provides an email address for reports concerning unregulated digital lenders.
With nearly 9.6 million loans worth Sh165.1 billion already issued by licensed providers, digital credit is firmly embedded in Kenya's financial system. The CBK's regulatory framework aims to ensure that digital lenders operate in a fair and transparent manner, protecting consumers from predatory practices.
Key points
- The Central Bank of Kenya has licensed 281 digital lenders to regulate the mobile loan market and eliminate predatory practices.
- The regulations require digital lenders to provide clear information to borrowers and restrict misleading advertising.
- The CBK's regulatory framework addresses data protection, consumer protection, and market conduct requirements to ensure fair and transparent lending practices.
