NAIROBI, Kenya, Oct 1 – The Central Bank of Kenya (CBK) has licensed 29 additional digital credit providers (DCPs), bringing the number of regulated lenders in the sector to 281 as the regulator steps up efforts to bring digital lending under formal oversight.

The latest licensing follows the approval of 25 DCPs in July and brings the number of licensed providers to 281.

CBK said it has received more than 900 applications for digital credit licenses since March 2022, with the review process focusing on the lenders’ business models, consumer protection measures and the suitability of proposed shareholders, directors and management.

“The focus of the engagements with the DCPs has been inter alia business models, consumer protection and fitness and propriety of proposed shareholders, directors, and management,” CBK said.

“This is to ensure adherence to the relevant laws and importantly that the interests of customers are safeguarded.”

The expansion of the regulated market comes as digital lending continues to play a significant role in providing credit to households and businesses, particularly through mobile and other digital platforms.

As of August 2026, licensed DCPs had issued 9.6 million loans valued at Sh165.1 billion, according to CBK.

The lenders offer a range of products, including education and development loans, short-term personal credit, asset financing and business loans, with many providing services through mobile applications and Unstructured Supplementary Service Data (USSD) platforms.

CBK began licensing DCPs after concerns over the conduct of unregulated digital lenders, including high borrowing costs, aggressive debt collection practices and misuse of customers’ personal information.

The regulator said other applicants remain at various stages of the licensing process, with many awaiting submissions of required documentation.

CBK has urged the applicants to submit outstanding documents to facilitate completion of their reviews.

Members of the public can report unregulated digital credit providers to CBK through its designated reporting channel.

The regulator says the licensing framework is intended to strengthen oversight of digital lenders while improving consumer protection in a rapidly expanding credit market.