Kenya’s digital credit market has grown further after the Central Bank of Kenya (CBK) licensed 27 more Digital Credit Providers (DCPs), raising the total number of authorised firms to 153.

The approvals were announced on Thursday under Section 59(2) of the CBK Act, coming just months after 41 lenders were cleared in June 2025.

"The Central Bank of Kenya (CBK) announces the licensing of an additional 27 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 153 following the licensing of 41 DCPS announced in June 2025."

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Since March 2022, CBK has received more than 700 applications for licensing.

The Bank said its assessments have focused on governance, business models, and customer protection.

“To ensure adherence to the relevant laws and, importantly that the interests of customers are safeguarded,” CBK said.

It also credited the cooperation of applicants and other state agencies for helping the process move forward. “We acknowledge the efforts of the applicants and the support of other regulators and agencies in this process,” the Bank stated.

Digital lenders mainly disburse loans through mobile platforms such as USSD codes.

Their products include school fee loans, short-term personal loans, asset financing, development loans, and business credit. By June 2025, licensed providers had issued 5.5 million loans worth Sh76.8 billion.

Some applications are still pending because of incomplete documentation.

“We urge these applicants to submit the pending documentation expeditiously to enable completion of the review of their applications,” CBK remarked.

The regulator has also asked the public to report unlicensed digital lenders through [email protected].

CBK said the licensing framework was introduced after concerns were raised over the conduct of unregulated lenders, who were accused of “their high cost, unethical debt collection practices, and the abuse of personal information.”

With the new approvals, the Central Bank signalled its determination to strengthen oversight of the sector while ensuring borrowers are better protected.