The move comes as regulators intensify efforts to regulate Kenya’s fast-growing digital lending sector, which has faced criticism for high interest rates, aggressive debt collection practices, and misuse of personal data.
In a statement on Tuesday, December 30, 2025, CBK noted that the approvals were granted under Section 59(2) of the Central Bank of Kenya Act, following a thorough review of each applicant’s business model, governance, and compliance with financial regulations.
In a statement on Tuesday, December 30, 2025, CBK noted that the approvals were granted under Section 59(2) of the Central Bank of Kenya Act, following a thorough review of each applicant’s business model, governance, and compliance with financial regulations.
This announcement comes three months after CBK approved 27 new digital lenders in September 2025.
“The Central Bank of Kenya has licensed an additional 42 Digital Credit Providers. This brings the total number of licensed DCPs to 195, following the approval of 27 DCPs announced in September,” the statement read.
Since March 2022, CBK has received over 800 applications from potential digital lenders. The regulator has worked closely with applicants to ensure that proposed shareholders, directors, and management teams meet the required standards of fitness and propriety.
“The Central Bank of Kenya has licensed an additional 42 Digital Credit Providers. This brings the total number of licensed DCPs to 195, following the approval of 27 DCPs announced in September,” the statement read.
Since March 2022, CBK has received over 800 applications from potential digital lenders. The regulator has worked closely with applicants to ensure that proposed shareholders, directors, and management teams meet the required standards of fitness and propriety.
Consumer protection remains a top priority, and CBK emphasized that all licensed lenders must adhere to legal requirements and safeguard the interests of borrowers.
Licensed DCPs provide a range of financial products through digital channels such as mobile applications and USSD codes.
Licensed DCPs provide a range of financial products through digital channels such as mobile applications and USSD codes.
Their services include short-term personal loans, business loans, education loans, asset financing, and development loans. As of November 2025, the licensed providers had disbursed approximately 6.6 million loans valued at Ksh109.8 billion, demonstrating the sector’s growing role in extending credit to individuals and small businesses traditionally excluded from mainstream banking.
The new licensing framework follows widespread public concern over unregulated digital lenders, who were accused of charging exorbitant interest rates, harassing borrowers, and compromising personal data.
The new licensing framework follows widespread public concern over unregulated digital lenders, who were accused of charging exorbitant interest rates, harassing borrowers, and compromising personal data.
CBK’s regulatory regime aims to enhance transparency, accountability, and fairness in the digital credit space while fostering consumer confidence in the system.
CBK Governor Kamau Thugge said the regulator’s objective is to ensure that digital lending contributes positively to financial inclusion without putting borrowers at risk.
CBK Governor Kamau Thugge said the regulator’s objective is to ensure that digital lending contributes positively to financial inclusion without putting borrowers at risk.
“We are committed to a strong, well-regulated digital lending environment that protects consumers, promotes responsible lending, and strengthens confidence in the sector,” Thugge said.
The regulator has urged remaining applicants, many of whom are at advanced stages of the review process, to promptly submit the required documentation to allow CBK to complete the licensing process.
The regulator has urged remaining applicants, many of whom are at advanced stages of the review process, to promptly submit the required documentation to allow CBK to complete the licensing process.
“Our goal is to ensure that all compliant lenders operate within a regulated and secure environment, which protects both borrowers and the integrity of the financial system,” CBK noted.
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