Kenya’s financial sector continues to see steady changes as the Central Bank of Kenya pushes forward with efforts to regulate digital lending.
With the announcement of 27 more Digital Credit Providers receiving licenses, the total number of approved lenders has now reached 153.
This follows an earlier round in June where 41 more providers were given the green light.
The Central Bank explained that the approvals are guided by the law, specifically Section 59(2) of the CBK Act, and are part of ongoing work to bring order and fairness to the fast-growing industry.Since March 2022, the regulator has received over 700 applications from companies seeking to operate in the digital lending space.
However, not all have been successful. Each application is reviewed carefully, with CBK paying attention to several factors including the integrity of shareholders and managers, the structure of the business model, and most importantly, consumer protection measures.
This process is designed to ensure that licensed companies can operate responsibly while offering services that meet the needs of borrowers.
Most of these providers operate through mobile apps and USSD codes, making loans accessible to millions of Kenyans at the touch of a button.
The types of loans available vary, ranging from small personal loans and education support to business financing and asset acquisition.
The convenience of these services has made digital lending one of the fastest growing areas of Kenya’s financial system. By June 2025, records show that 5.5 million loans had been issued by DCPs, with a total value of Ksh76.8 billion.
Even as new firms are added, the Central Bank has made it clear that many applications are still under review, largely due to incomplete submissions or missing documentation.
Applicants have been urged to finalize their paperwork so that the licensing process can move faster.
At the same time, the regulator has called on the public to report any unregulated lenders, reminding Kenyans that a list of all licensed providers can be found on its official website.
The move to license digital lenders more strictly came after years of complaints from customers. Unregulated firms were often accused of charging extremely high interest rates, harassing borrowers during debt collection, and mishandling sensitive personal data. These practices damaged trust in the sector, which led CBK to introduce a stricter oversight system.
The regulator believes that the current framework will not only prevent such abuses but also restore public confidence in digital loans.The recent approvals mark another step in shaping a more stable lending environment.
More licensed firms mean more options for Kenyans seeking credit, but under rules that aim to protect them from exploitation.
