Kenya’s digital lending market is experiencing rapid growth, prompting the Central Bank of Kenya (CBK) to step up its efforts in regulating this evolving sector. The CBK announced the licensing of 29 new Digital Credit Providers (DCPs) today, bringing the total number of licensed digital lenders in the country to 281 as of September 30, 2026.
This surge in new licenses follows closely on the heels of another wave of approvals in July, when the CBK licensed 25 additional digital lenders. Over a brief period of just three months, a total of 54 new providers have been added to the market, illustrating the escalating demand for digital credit services among Kenyans.
Digital lending has become a cornerstone of Kenya’s financial ecosystem. By August 2026, licensed digital lenders had issued 9,596,509 loans, amounting to a total of KSh165.1 billion (about $1.27 billion). This shift signifies a significant trend: more individuals are opting for loans through digital platforms instead of traditional bank branches.
The range of loan products available has expanded as well, catering to needs from short-term personal financing to education, development, asset acquisition, and business funding.
According to CBK data, outstanding loans issued by digital credit providers nearly doubled, jumping from KSh55.2 billion in December 2024 to KSh110.1 billion in December 2025. Meanwhile, the number of licensed providers soared from just 85 to 195, reflecting a thriving sector eager to meet the financial needs of a growing population.
Similar read: Kenya licenses 25 more digital lenders as mobile loan market hits $1.16 billion
As the digital lending landscape expands, it continues to reshape the way Kenyans access credit, making it easier and more convenient for millions to secure the financial support they need. This evolution not only highlights the rapid technological advancements in the financial sector but also underscores the CBK’s commitment to ensuring a regulated and safe environment for both lenders and borrowers in Kenya.
Why the CBK is licensing more digital lenders
The Central Bank has started a licensing program for digital lenders in response to growing concerns about the risks of unregulated borrowing. Before this framework was established, many borrowers faced issues such as high loan costs, aggressive debt collection practices, and misuse of personal information by lenders.
To address these concerns, the CBK was granted the authority to license and oversee digital credit providers through updates to the CBK Act, with these regulations officially taking effect in March 2022.
Since then, the CBK has carefully reviewed hundreds of applications from various lenders, evaluating their business models, consumer protection measures, and the qualifications of their shareholders, directors, and managers.
The CBK said it has received more than 900 license applications. However, not every application has been approved; some lenders are still working to meet requirements. This highlights that while the number of licensed lenders is increasing, the CBK is maintaining strict regulatory oversight.
For borrowers, this means it’s crucial to make sure that any digital lender they consider is properly licensed before taking out a loan. Being informed and cautious can help them avoid potential pitfalls in the borrowing process.
Also read: Kenyan court rules unlicensed loan apps cannot sue borrowers to recover debts
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