CBK licenses 29 more digital credit providers

The Central Bank of Kenya (CBK) has issued licenses to 29 more Digital Credit Providers (DCPs), increasing the total number of licensed digital lenders to 281. This latest round of licensing aligns with the CBK's goal of bringing digital credit providers under its regulatory framework and enhancing consumer protection in the fast-expanding lending industry.

According to a press release issued on September 30, 2026, CBK licensed these providers in compliance with Section 59(2) of the Central Bank of Kenya Act and relevant regulations.

Since March 2022, the CBK has received over 900 applications for digital credit provider licenses. The bank has collaborated with applicants to evaluate their submissions and ensure adherence to applicable laws. Among the 29 newly licensed providers are firms offering various digital lending products, such as unsecured supplementary service data (USSD) credit, consumer loans, education loans, development loans, and short-term personal loans.

CBK emphasized that applicants must demonstrate compliance with regulatory requirements, including consumer protection measures and responsible lending practices. As of August 2026, the 176 licensed DCPs had disbursed 9,609,509 loans valued at Ksh165.1 billion, underscoring the substantial scale of digital lending in Kenya.

The regulator has cautioned the public to be vigilant when dealing with digital credit providers and to confirm if lenders hold valid licenses. CBK has warned against unregulated providers, citing concerns over predatory lending practices, exorbitant credit costs, and unethical debt collection methods. The regulator has also expressed worries about unregulated digital lenders' misuse of customers' personal information.

The CBK intends to persist in collaborating with other regulators and government agencies to guarantee that digital credit providers comply with the law and safeguard consumers.