CBK noted that the 252 licensed DCPs now cover a much broader, matured suite of financial products.
The Central Bank of Kenya (CBK) has officially licensed 25 new Digital Credit Providers (DCPs), raising the total number of approved digital lenders in the country to 252. The new regulatory approvals are part of an ongoing, multi-year supervision campaign designed to bring Kenya’s highly active digital credit sector under formal oversight.
Under the Central Bank of Kenya Act, the regulator has been systematically auditing and licensing mobile lenders to curb predatory lending behaviors, protect consumer data, and bring stability to the fintech ecosystem.
Before the CBK introduced the licensing framework in 2022, Kenya’s digital lending space was frequently described as a “wild west.” Dozens of unregulated mobile apps operated with minimal oversight, leading to widespread consumer complaints.
Unlicensed lenders often charged exorbitant, compounding interest rates. To recover debts, some apps engaged in invasive recovery tactics, including accessing users’ contact lists to send unsolicited messages to friends and family.
Under the current regime, DCP applicants undergo intensive vetting. To obtain a license, digital lenders must prove they comply with the Data Protection Act, demonstrate transparent pricing models, and establish clear, non-exploitative debt-collection procedures.
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The addition of 25 new licensed entities shows that despite the high cost of regulatory compliance, Kenya remains a highly attractive market for digital credit.
By systematically licensing these operators, the CBK is successfully moving digital lending from an informal, high-risk sector into a structured segment of the mainstream financial system. This transition not only protects everyday borrowers but also builds a healthier environment for international investors looking to back compliant, scalable fintech platforms in East Africa.
