Kenya’s Central Bank has licensed 25 additional digital credit providers, bringing the total number of approved digital lenders in the country to 252, as the regulator continues to clean up a market that grew rapidly but largely without oversight.
The Central Bank of Kenya said it has received more than 800 applications since opening the licensing window in March 2022, working through each one with a focus on business models, consumer protection, and the fitness of proposed shareholders, directors, and management.
The latest batch follows 32 licences issued in April 2026 and reflects the scale of Kenya’s digital lending industry, which has expanded dramatically over the past decade.
The numbers show just how embedded mobile loans have become in everyday Kenyan life. As of May 2026, licensed digital credit providers had issued 8.37 million loans worth Ksh150.56 billion (about $1.16 billion). That is a significant volume of credit flowing through apps and USSD codes, reaching people in markets, on boda bodas, in small shops, and at home, many of whom have no meaningful access to traditional bank loans.
Digital credit providers in Kenya operate primarily through mobile phones, using USSD codes and apps to issue credit products that include short-term personal loans, education loans, development loans, asset financing, and business loans.
The speed and accessibility of these products are what make them popular. A borrower can receive money within minutes without visiting a branch or filling out lengthy forms.
Why the Kenyan Central Bank’s regulation is necessary
The licensing push was not born out of enthusiasm for the industry. It was a direct response to public outrage. Before the CBK introduced oversight, unregulated digital lenders operated freely, and the complaints were serious and widespread.
Borrowers reported interest rates that were difficult to understand upfront and punishing when repayment was delayed. Debt collection practices were described as aggressive and humiliating, with some lenders contacting borrowers’ family members, friends, and employers.
There were also documented cases of lenders accessing and misusing personal data stored on borrowers’ phones without proper consent.
The CBK’s licensing framework was designed specifically to address those abuses, establishing minimum standards around transparency, fair pricing, data protection, and ethical recovery practices. Licensed lenders must meet those standards to operate, while unlicensed ones are barred from the market.
The CBK said other applicants remain at various stages of the process, largely waiting to submit required documentation. It urged those applicants to complete their submissions promptly to allow the review to proceed. The regulator acknowledged the efforts of applicants and the cooperation of other government agencies throughout the licensing process.
Also read: 5 key lessons from the revised Kenyan Consumer Protection Act
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