Kenya Increases Governed Online Lending by Licensing 27 Additional Service Providers
Central Bank of Kenya Licenses More Digital Credit Providers, Boosting Market Regulation
The Central Bank of Kenya (CBK) has announced that it has licensed 27 additional Digital Credit Providers (DCPs), bringing the total number of licensed entities to 153. This licensing follows the approval of 41 DCPs in June 2025, marking steady progress in formalizing the digital credit market in Kenya.
The CBK's licensing process is aimed at ensuring compliance with relevant laws and consumer protection standards. The process places strong emphasis on the fitness and propriety of shareholders, directors, and management to ensure customer interests are safeguarded. This move is in response to concerns about predatory practices by unregulated lenders, and aims to address issues such as high interest rates, misuse of personal data, and unethical debt collection methods.
Digital Credit Providers primarily operate through mobile channels such as USSD, making it easier for Kenyans to access credit. By June 2025, these licensed DCPs have issued 5.5 million loans worth Ksh. 76.8 billion. The digital credit market in Kenya is growing rapidly and expanding access to credit, providing a valuable service to many Kenyan citizens.
The CBK has received over 700 applications since March 2022, demonstrating a high level of interest in the digital credit market. The licensing process involves a thorough review of business models, governance structures, and compliance with consumer protection standards. The regulator aims to strengthen oversight, improve transparency, and promote responsible lending within the digital credit market.
The CBK continues to encourage the formalization and regulation of the digital credit market in Kenya. The public is encouraged to report unlicensed operators via the CBK's official email channels. The goal of the licensing and oversight process is to maintain customer trust and safeguard their interests in the digital credit market.
The CBK did not provide information about the specific names of the newly licensed Digital Credit Providers. However, the regulator's actions indicate a continued effort to formalize and regulate the digital credit market in Kenya, ensuring that it operates fairly and transparently for the benefit of all Kenyans.
