The Central Bank of Kenya (CBK) has approved licences for 25 additional Digital Credit Providers (DCPs), expanding the country’s regulated digital lending sector as licensed firms disbursed loans worth KSh150.56 billion by May 2026.
The announcement was made on Tuesday, July 14, in a press release issued by the Central Bank of Kenya, which said the new approvals were granted pursuant to Section 59(2) of the Central Bank of Kenya Act.
The latest approvals come just three months after the CBK licensed 32 Digital Credit Providers in April 2026, bringing the total number of licensed digital lenders operating in Kenya to 252.
More Kenyans turning to digital loans
The expansion of Kenya’s digital lending ecosystem comes amid growing reliance on mobile credit as households struggle with rising living costs.
According to the 2026 MoneyMarch Report by digital lender Tala, 58 per cent of Kenyans have relied on digital loans to meet emergency financial needs, highlighting the country’s increasing dependence on mobile lending platforms.
The report paints a worrying picture of household financial resilience, revealing that 24 per cent of Kenyans would be unable to maintain their current standard of living for more than one month if their income were to stop unexpectedly.
Despite the rapid growth of digital lending, millions of Kenyans still lack access to formal credit for either personal or business purposes, leaving many households and small enterprises financially excluded.
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What the digital lending sector looks like
According to the CBK, licensed Digital Credit Providers primarily offer loans through digital platforms, including mobile applications and Unstructured Supplementary Service Data (USSD) channels.
The loan products available span a wide range of financial needs, including education loans, development loans, short-term personal loans, asset-financing facilities, and business loans.
Since opening the licensing process in March 2022, the Central Bank said it has received more than 800 applications from prospective Digital Credit Providers.
The regulator noted that applicants have undergone extensive reviews covering their business models, consumer protection measures, and the suitability of proposed shareholders, directors, and management teams to ensure compliance with Kenya’s financial regulations and safeguard customers’ interests.
As of May 2026, Kenya’s licensed digital lenders had collectively issued 8.37 million loans worth KSh150.56 billion, underscoring the sector’s rapid expansion and growing role in providing access to credit.
The CBK added that many applications remain under review, with several applicants yet to submit the required documentation needed to complete the licensing process. The regulator urged such firms to do so promptly.
The central bank also reiterated that regulation of digital lenders was introduced following widespread public complaints about unregulated loan apps, including allegations of excessive lending costs, unethical debt collection practices and misuse of customers’ personal information.
