The Central Bank of Kenya (CBK) has licensed an additional 42 digital credit providers (DCPs), raising the total number of approved lenders operating in the country to 195 as regulators intensify efforts to clean up Kenya’s fast-growing digital lending space.
In a statement issued on Tuesday, December 30, 2025, CBK said the new approvals were granted under Section 59(2) of the Central Bank of Kenya Act, following a rigorous review process focused on consumer protection, governance, and compliance with financial laws.
The latest licensing comes just three months after CBK approved 27 digital lenders in September.
“The Central Bank of Kenya (CBK) announces the licensing of an additional 42 Digital Credit Providers (DCPs). This is pursuant to Section 59(2) of the Central Bank of Kenya Act (CBK Act). This brings the number of licensed DCPs to 195 following the licensing of 27 DCPs announced in September 2025,” the statement reads in part.
“CBK has received more than 800 applications since March 2022 and has worked closely with the applicants in reviewing their applications. The focus of the engagements with DCPs has been inter alia on business models, consumer protection, and fitness and propriety of proposed shareholders, directors, and management. This is to ensure adherence to the relevant laws and, importantly, that the interests of customers are safeguarded. We acknowledge the efforts of the applicants and the support of other regulators and agencies in this process.”
According to CBK, licensed digital credit providers predominantly issue loans through digital platforms, including mobile applications and USSD codes. Their products range from short-term personal loans and business financing to education, development, and asset-financing loans.
As of November 2025, the regulator revealed that licensed DCPs had issued approximately 6.6 million loans worth Sh109.8 billion, highlighting the sector’s significant role in expanding access to credit, particularly for individuals and small businesses traditionally excluded from formal banking.
“DCPs predominantly carry out their lending activities digitally, including through Unstructured Supplementary Service Data (USSD) codes. Loan products include education loans, development loans, short-term personal loans, asset financing and business loans. As of November 2025, licensed DCPs had granted 6.6 million loans valued at Sh109.8 billion,” CBK stated.
The licensing framework was introduced after widespread public complaints over unregulated digital lenders accused of charging exorbitant interest rates, harassing borrowers, and misusing personal data. CBK said the new oversight regime aims to ensure transparency, fairness, and accountability in the sector.
The regulator urged remaining applicants, many of whom are at advanced stages of review, to submit outstanding documentation promptly to allow completion of the licensing process.

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