NAIROBI, Kenya — The Central Bank of Kenya (CBK) has licensed 42 additional Digital Credit Providers (DCPs), raising the number of regulated digital lenders in the country to 195 as part of ongoing efforts to professionalise the fast‑growing digital credit sector.
In a statement issued on December 30, 2025, CBK said the latest round of licences was granted under Section 59(2) of the Central Bank of Kenya Act, following the licensing of 27 new DCPs earlier in September 2025.
“The Central Bank of Kenya announces the licensing of an additional 42 Digital Credit Providers (DCPs)… bringing the number of licensed DCPs to 195,” the statement read in part.
The newly licensed providers primarily operate through mobile platforms, USSD codes and web interfaces, offering a wide range of loan products, including education and development loans, short‑term personal credit, asset‑financing and business loans.
CBK highlighted that since the licensing initiative began in March 2022, it has received more than 800 applications from firms seeking market entry.
Each application undergoes a rigorous review focusing on business model viability, consumer protection standards, and the fitness and propriety of proposed shareholders, directors and management teams.
As of November 2025, licensed digital lenders had issued approximately 6.6 million loans valued at Sh 109.8 billion, underscoring the rapid adoption of digital credit solutions in Kenya’s financial ecosystem.
The move to expand licensing comes amid longstanding concerns over predatory lending practices, including excessive interest rates, unethical debt collection and misuse of customer data by unregulated operators.
By bringing more players into the regulated framework, CBK says it aims to strengthen consumer protection and transparency.
CBK also urged other applicants still at various stages of processing to submit outstanding documentation promptly to complete their licensing reviews.
Members of the public are encouraged to report unlicensed lenders via the regulator’s official channels to help curb illegal lending activities.
