Central Bank of Kenya licenses 27 more digital credit providers

The Central Bank of Kenya (CBK) has licensed an additional 27 Digital Credit Providers (DCPs), bringing the total number of licensed providers to 153. This follows the licensing of 41 DCPs in June 2025 and is part of the ongoing effort to regulate the digital lending sector under the Central Bank of Kenya Act.

Since March 2022, the CBK has received over 700 applications from prospective DCPs. The review process has focused on evaluating the business models, ensuring strong consumer protection measures, and assessing the fitness and propriety of the proposed shareholders, directors, and management. This process is designed to ensure all licensed providers comply with relevant laws and, most importantly, safeguard the interests of their customers. The CBK acknowledged the cooperation of applicants and the support of other regulatory bodies and agencies in this licensing process.

Digital Credit Providers primarily use platforms like USSD codes to offer a range of loan products, including education loans, short-term personal loans, asset-financing, and business loans. As of June 2025, licensed DCPs had already disbursed 5.5 million loans, amounting to a total value of Ksh. 76.8 billion.

The CBK’s move to license and oversee DCPs was prompted by public concerns about the predatory practices of unregulated providers. These issues included exorbitant interest rates, unethical debt collection tactics, and the misuse of personal data.

The CBK stated that other applicants are at various stages of the review process, with many still needing to submit the required documentation.

The public can report unregulated DCPs by sending an email to dcps@centralbank.go.ke.