NAIROBI, Kenya, Sept 25 – The value of loans held by licensed digital lenders in Kenya nearly doubled to Sh110.1 billion in 2025, driven by an increase in the number of providers and borrowers, according to the Central Bank of Kenya (CBK).

The CBK’s Bank Supervision Annual Report 2025 shows that gross outstanding loans held by Digital Credit Providers (DCPs) rose by 99.6 percent from Sh55.2 billion in December 2024.

The number of licensed digital lenders also increased to 195 by the end of 2025, up from 85 at the close of 2023.

The average number of active loan accounts rose by 71 percent to 6.74 million in December 2025, compared to 3.9 million a year earlier. The average loan size, however, remained broadly unchanged.

CBK attributed the growth to increased customer use of technology-based lending services, with most loans issued through USSD codes and mobile platforms.

The loans cover various needs, including personal expenses, business operations, agriculture and emergencies.

The central bank began regulating digital lenders after the Central Bank of Kenya (Amendment) Act, 2021, gave it powers to license and supervise digital credit providers.

“CBK has focused more on consumer protection, data governance, and market stability, with tighter scrutiny of DCPs,” the regulator said.

It added that digital lending continued to grow rapidly in 2025, mainly due to the increase in licensed providers.

The CBK said the expansion took place alongside closer regulatory oversight and improved compliance among digital lenders.