The Central Bank of Kenya (CBK) licensed 25 additional digital lenders in a recent round, bringing the total number of licensed Digital Credit Providers (DCPs) in Kenya to 252. According to CBK officials, the new licenses were granted as part of an ongoing vetting process under the Digital Credit Providers Regulations to ensure compliance and manage risks in the sector.
The latest licensing round follows the April 14, 2026 announcement when the Central Bank of Kenya (CBK) licensed 32 additional digital credit providers (DCPs), increasing the total number of licensed digital lenders to 227, according to CBK statements. The new batch of 25 licenses was granted subsequent to that date under the same regulatory framework established since March 2022, officials said. This brings the total number of licensed DCPs in Kenya to 252, reflecting a phased and selective approach by the regulator.
Since the inception of the licensing framework, licensed digital lenders have disbursed approximately 7.5 million loans totaling KSh 133.5 billion as of February 2026, CBK reported in its April 2026 press release.
CBK has received more than 800 applications from prospective digital lenders since it began accepting licence submissions in March 2022, records show. However, only a fraction of these applicants have been approved, with an estimated licensing rate of roughly 28 percent as of April 2026 before the latest approvals. The regulator’s licensing process involves a rigorous vetting procedure to ensure compliance with the Digital Credit Providers Regulations issued under the Central Bank of Kenya Act. Applicants must submit detailed information through an online portal, including corporate documents and “fit and proper” declarations for directors, senior officers, and significant shareholders, officials confirmed.
The licensing process requires payment of a non-refundable application fee of 5,000 Kenyan shillings (KSh) upon submission. Approved applicants then pay a licence fee of KSh 20,000, with additional annual fees prescribed under the regulations. CBK’s vetting includes assessments of prudential standards, governance, and consumer protection measures before granting licences. The regulator maintains a public register of licensed DCPs on its website, enabling consumers to verify the legitimacy of digital lenders.
These figures represent lending activity under the regulated regime and highlight the growing role of licensed DCPs in expanding credit access, particularly through mobile and app-based platforms. CBK officials noted that the continued licensing of additional providers is intended to broaden the regulated market and reduce the influence of unlicensed operators.
The Digital Credit Providers Regulations, revised in October 2024, set out detailed procedures and standards for licensing. These include requirements for transparency, fair pricing, responsible debt collection, and consumer protection to address concerns about predatory lending practices. CBK encourages the public to report unregulated lenders or misconduct via a dedicated email address, underscoring its enforcement mandate.
The trajectory of licensed digital lenders has shown steady growth since the first tranches: 27 licensed in October 2024, 41 in June 2025, 27 in September 2025, followed by 42 in December 2025, and 32 in April 2026. This phased expansion reflects CBK’s ongoing efforts to balance market development with regulatory oversight. The increase to 252 licensed providers signals a maturing digital credit sector operating under formal supervision.
CBK’s authority to license digital lenders is derived from Section 59(2) of the Central Bank of Kenya Act. The regulator’s multi-stage application process includes comprehensive documentation and compliance checks designed to ensure that licensed DCPs adhere to prudential and conduct standards. Officials emphasized that licensing is not automatic, and many applications are declined or remain under review.
The expansion of licensed digital lenders aligns with CBK’s broader mandate to promote financial inclusion while safeguarding consumer interests. By extending oversight to a growing number of providers, the regulator aims to foster a transparent and responsible digital credit market in Kenya.
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