CBK: Digital loans nearly double to Sh110.1bn in 2025

The value of loans provided by licensed digital lenders in Kenya surged nearly 100% to Sh110.1 billion in 2025, as reported by the Central Bank of Kenya (CBK). The Bank Supervision Annual Report 2025 highlights a significant increase in both the number of digital credit providers and the number of active loan accounts.

Gross outstanding loans held by Digital Credit Providers (DCPs) climbed from Sh55.2 billion in December 2024 to the current figure, marking a 99.6% growth. This expansion came alongside a rise in the number of licensed digital lenders from 85 in 2023 to 195 by the close of 2025. The average number of active loan accounts surged by 71% to 6.74 million in December 2025, compared to 3.9 million a year earlier.

Despite the substantial increase in loans and active accounts, the average loan size remained relatively stable. The CBK attributes this growth to the rising adoption of technology-based lending services, mainly facilitated through USSD codes and mobile platforms. The majority of these loans serve diverse purposes, such as personal expenses, business operations, agriculture, and emergencies.

The Central Bank of Kenya introduced stricter regulation of digital lenders following the enactment of the Central Bank of Kenya (Amendment) Act, 2021, which empowered it to license and supervise digital credit providers. The regulator has placed a strong emphasis on consumer protection, data governance, and market stability, implementing stricter scrutiny of DCPs.

CBK indicates that digital lending experienced a rapid growth trend in 2025, primarily due to the increase in licensed providers, coupled with tighter regulatory oversight and improved compliance among digital lenders.