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The Central Bank of Kenya has approved 32 additional Digital Credit Providers (DCPs), increasing the total number of licensed digital lenders in the country to 227.
In a statement released on Tuesday, the regulator said the move is part of ongoing efforts under Section 59(2) of the CBK Act to streamline and regulate the rapidly expanding digital lending sector.
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CBK noted that it has been working closely with applicants, evaluating their business models, governance structures, and adherence to consumer protection standards before granting licenses.
The bank said its assessment focuses on ensuring that proposed shareholders, directors, and management teams meet the required integrity and competence standards, while also safeguarding consumer interests.
The new approvals follow an earlier batch of 42 lenders licensed in December, as the regulator continues reviewing applications submitted since the regulatory framework was introduced in March 2022.
So far, CBK has received over 800 applications from firms seeking to operate as digital lenders, with many still under review at different stages.
The vetting process, the bank said, is aimed at allowing only credible and compliant firms into the market, while protecting the growing number of customers relying on digital credit services.
Digital lenders mainly provide loans through mobile apps and USSD platforms, offering quick and convenient access to credit. Their products range from education and development loans to short-term personal loans, asset financing, and business credit.
According to CBK data, by February 2026, licensed DCPs had issued about 7.5 million loans worth Sh133.5 billion, highlighting the sector’s increasing importance in Kenya’s financial system.
However, the regulator noted that several applications remain incomplete, urging firms to submit the required documents promptly to speed up the review process.
CBK also encouraged the public to report unlicensed digital lenders through its official channels.
The regulation of digital lenders was introduced following widespread complaints about unregulated operators, including concerns over high interest rates, unethical debt collection practices, and misuse of borrowers’ personal data.
Since then, CBK has stepped up efforts to clean up the sector by bringing more firms under oversight and enforcing compliance.
The latest approvals are expected to boost transparency and accountability, promote responsible lending, and protect consumers from exploitation.
As the number of licensed providers continues to grow, CBK reaffirmed its commitment to strengthening supervision to support financial inclusion while minimizing risks to borrowers.
