The Central Bank of Kenya (CBK) has licensed 27 more Digital Credit Providers (DCPs).

The move brings the total number of licensed firms to 153 after the regulator approved 41 more providers in June.

“The Central Bank of Kenya (CBK) has announced the licensing of an additional 27 Digital Credit Providers (DCPs), pursuant to Section 59(2) of the Central Bank of Kenya Act (CBK Act). This brings the total number of licensed DCPs to 153, following the approval of 41 providers in June 2025,” the regulator said in a press release on Thursday, September 4, 2025.”

CBK has received more than 700 applications since March 2022. It has been reviewing them in close consultation with applicants. The regulator has focused on business models, consumer protection, and the integrity of shareholders, directors, and managers. The aim is to ensure that lenders follow the law and protect customer interests.

Licensed providers operate mainly through digital platforms such as mobile applications and USSD codes. They offer a range of products, including personal loans, education loans, asset financing, business loans, and development loans.

Market growth

By June 2025, DCPs had issued 5.5 million loans worth Ksh76.8 billion.

The regulator said that details of the licensed firms are available on its website. Other applications remain under review, with many pending due to missing documents. CBK has urged applicants to complete their submissions without delay to enable the licensing process to move forward.

Members of the public have been asked to report unregulated lenders to the CBK through their email.

The licensing and oversight framework was introduced after rising complaints from borrowers. Many unregulated digital lenders were accused of charging excessive interest, using unethical debt collection methods, and mishandling personal data. CBK said the new regime aims to curb such practices and to restore trust in the digital lending market.

The licensing of additional firms is expected to expand access to credit while ensuring higher standards of conduct. The regulator also noted the cooperation of other agencies in the process and acknowledged the efforts of applicants who have complied with the requirements.

The digital lending sector has grown rapidly in Kenya over the past decade. For many citizens, mobile loans are the first point of access to credit. However, the sector has faced criticism for poor practices. CBK hopes that a stronger regulatory framework will protect borrowers while supporting innovation in the financial sector.