The Central Bank of Kenya licensed 29 more digital credit providers, raising the number of regulated DCPs to 281 as the regulator continues a review process that has seen more than 900 applications since 2022.
CBK licensed 29 additional digital credit providers, bringing the total to 281 regulated DCPs.
Licensed DCPs had issued 9,596,509 loans worth Ksh165.1 billion by August.
CBK has received over 900 licence applications since March 2022 and asks applicants to submit pending documents to complete reviews.
# What happened Kenya (CBK) announced the licensing of 29 additional digital credit providers (DCPs) in a September 30 press release. That raises the number of regulated DCPs operating under CBK oversight to 281.
# Why CBK is licensing more lenders CBK says the approvals follow the legal framework under Section 59(2) of the Central Bank of Kenya Act. The regulator frames the licensing drive as a response to risks associated with unregulated digital lenders, including high borrowing costs, unethical debt collection practices, and misuse of customers' personal information.
CBK has been processing applications since March 2022. It reports receiving more than 900 applications in that period and reviews each submission for business model soundness, consumer protection measures, and the suitability of proposed shareholders, directors, and managers.
# Scale of digital lending so far By August, the licensed DCPs had issued 9,596,509 loans with a combined value of Ksh165.1 billion. Those figures give a snapshot of the market size under regulation and the volume of small-value, frequent lending that digital platforms handle.
# Outstanding application issues and next steps CBK said many applicants remain at different stages of the approval process because they have pending documents. The regulator urged those applicants to submit outstanding documentation quickly so CBK can complete its reviews.
This licensing round follows an earlier batch in July when CBK approved 25 DCPs, showing a continued, phased clearance of applicants rather than a single large wave of licences.
# Legal and consumer-protection context A Small Claims Court ruling referenced in coverage reinforces the requirement for proper licensing: the court held that a lender operating without a CBK licence cannot enforce lending claims. That ruling increases the legal risk for unlicensed operators and strengthens the regulator's position when removing or sanctioning noncompliant providers.
# What this means for borrowers and the market
For the market: the licensing pipeline and the volume of applications suggest continued commercial interest in digital credit. The regulator's focus on governance and consumer protection will be a gate for firms that want to scale under formal oversight.
# Practical actions for readers
# Bottom line CBK's latest approvals increase the number of regulated digital lenders to 281 while licensed providers have already disbursed nearly Ksh165.1 billion across about 9.6 million loans. The regulator continues to vet applicants carefully and is pushing for documentation and consumer protections as the sector remains under close scrutiny.
CBK has intensified its licensing drive to curb unregulated digital lenders accused of high costs, unethical debt collection and data misuse.
HALI ngumu ya maisha imesukuma mamilioni ya Wakenya kutafuta mikopo ya kidijitali ili kukidhi mahitaji ya kila siku, huku zaidi ya akaunti milioni nane zikikopa zaidi ya Sh150 bilioni. Takwimu za Benki Kuu ya Kenya (CBK) zinaonyesha kuwa mikopo hiyo mingi haitumiki kuanzisha biashara au kuwekeza, bali kugharamia matumi
The proposed rules will govern payment providers on how they handle customers' money.
CBK also noted that demand for affordable credit remains unmet, particularly among small and medium-sized enterprises, despite the average lending rate having fallen.
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