The Central Bank of Kenya (CBK) has issued operational licenses to an additional 42 digital Credit Providers (DCPs).
This decision brings the total number of approved lenders in the country to 195, as regulators step up efforts to clean up Kenya's rapidly developing digital lending market.
In a statement on Tuesday, December 30, 2025, CBK announced the new approvals were granted under Section 59(2) of the Central Bank of Kenya Act, following a thorough evaluation process that focused on consumer protection, governance, and financial law compliance.
“The Central Bank of Kenya (CBK) announces the licensing of an additional 42 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 195 following the licensing of 27 DCPs announced in September 2025,” the statement reads in part.
The licensing comes after years of public outrage about shylock-like digital apps. Prior to the 2022 regulatory framework, numerous unregulated lenders were known for exorbitant interest rates, debt shaming, and data privacy violations.
The CBK stated on Tuesday that the new licensees had been thoroughly evaluated for their business strategies, governance structures, and consumer protection systems.
‘’This is to ensure adherence to the relevant laws and, importantly, that the interests of customers are safeguarded. We acknowledge the efforts of the applicants and the support of other regulators and agencies in this process.’’ CBK stated.
DCPs primarily conduct loan activities online, including using Unstructured Supplementary Service Data codes. Loan types include school loans, development loans, short-term personal loans, asset finance, and company loans.
As of November 2025, CBK reports that licensed DCPs had provided 6.6 million loans totalling $851.2 million (Ksh 109.8 billion).
The regulator reports that it has received more than 800 applications since March 2022.
The latest licensing comes barely three months after the CBK approved 27 other digital lenders in September.
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