The Central Bank of Kenya (CBK) has licensed 27 additional Digital Credit Providers (DCPs), bringing the total number of approved digital lenders to 153 as of September 2025.
- •The move follows the clearance of 41 firms in June in the regulator’s ongoing efforts to formalize a sector long criticized for predatory practices.
- •By June 2025, licensed digital lenders had disbursed 5.5 million loans worth KSh 76.8 billion, filling gaps left by traditional banks.
- •Products range from short-term personal loans to business credit, education loans, and asset financing, often delivered through mobile platforms and USSD channels.
Kenya’s digital lending market has grown rapidly since the mid-2010s, driven by mobile penetration and unmet demand for credit. While providing access for millions, the sector has faced criticism for encouraging over-indebtedness and charging triple-digit effective annual rates. The regulator has received more than 700 applications since March 2022, with hundreds still under review.
Regulatory Shifts in Motion
The new approvals come as CBK accelerates broader reforms. On August 7, the bank issued draft regulations for Non-Deposit Taking Credit Providers (NDTCPs), a framework set to replace the Digital Credit Providers Regulations, 2022.
The draft proposes a tiered licensing system, requiring firms with at least KSh 20 million in paid-up capital to hold full licenses, while smaller operators can register at lower fees. Licensed entities would also face annual charges of up to KSh 500,000, raising compliance costs for the sector.
