Surge in Digital Loans as CBK Approves 32 More Lenders

The Central Bank of Kenya (CBK) has announced the licensing of 32 additional Digital Credit Providers (DCPs), pushing the total number of approved firms to 227.

In a press release dated April 14, 2026, the regulator said the move is in line with Section 59(2) of the CBK Act and follows the earlier licensing of 42 DCPs in December 2025.

“The Central Bank of Kenya (CBK) announces the licensing of an additional 32 Digital Credit Providers (DCPs). This is pursuant to Section 59(2) of the Central Bank of Kenya Act (CBK Act). This brings the number of licensed DCPs to 227 following the licensing of 42 DCPs announced in December 2025,” said CBK.

Over 800 Applications Reviewed

CBK revealed it has received more than 800 applications since March 2022, highlighting the growing demand for digital lending services in the country.

The regulator emphasized that its review process focuses on key areas to protect consumers and ensure compliance with the law.

“The focus of the engagements with DCPs has been inter alia on business models, consumer protection and fitness and propriety of proposed shareholders, directors, and management,” said CBK.

Additionally, CBK noted that these efforts aim to ensure customer interests remain safeguarded.

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Digital Lending Expands Rapidly

Digital Credit Providers continue to play a significant role in Kenya’s financial sector, offering loans through digital platforms such as USSD codes.

“DCPs predominantly carry out their lending activities digitally, including through Unstructured Supplementary Service Data (USSD) codes,” said CBK.

The CBK outlined the types of loans offered, which include education loans, development loans, short-term personal loans, asset financing, and business loans.

“As of February 2026, licensed DCPs had granted 7.5 million loans valued at Ksh. 133.5 billion,” CBK added.

Call for Compliance and Public Reporting

Even as licensing continues, CBK noted that some applicants are yet to complete the process due to missing documentation.

“Other applicants are at different stages in the process, largely awaiting the submission of requisite documentation. We urge these applicants to submit the pending documentation expeditiously to enable completion of the review of their applications,” CBK stated.

The regulator also encouraged members of the public to report any unregulated digital lenders.

“Reports by the public on unregulated DCPs can be sent through: dcps@centralback.go.ke,” said CBK.

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Addressing Predatory Practices

CBK reiterated that the licensing and regulation of DCPs were driven by public concerns over misconduct in the digital lending space.

“The licensing and oversight of DCPs as indicated previously, was precipitated by concerns raised by the public about the predatory practices of the unregulated DCPs, and in particular, their high cost, unethical debt collection practices, and the abuse of personal information,” CBK added.

The latest move signals CBK’s continued efforts to streamline Kenya’s digital lending sector while enhancing consumer protection and accountability among financial service providers.

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