CBK (Central Bank of Kenya) regulated digital lenders ended 2025 with an average loan size of KSh 16,341, up from KSh 13,917 a year earlier, as digital borrowing expanded rapidly.

Outstanding credit from licensed Digital Credit Providers nearly doubled to KSh 110.1billion from KSh 55.2billion, while the number of loan accounts rose about 70% to 6.74million from 3.96million.

CBK says the growth reflects rising demand for convenient technology-driven credit and a broader pool of regulated lenders.

Digital loans cover short-term personal needs, education, agriculture, business, asset finance, emergencies and motor vehicles.

In April, the CBK announced the licensing of an additional 32 Digital Credit Providers (DCPs). This brings the number of licensed DCPs to 227 following the licensing of 42 DCPs announced in December 2025.

CBK said it has received more than 800 applications since March 2022 and has worked closely with the applicants in reviewing their applications. The focus of the engagements with DCPs has been inter alia on business models, consumer protection and fitness and propriety of proposed shareholders, directors, and management.

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

DCPs predominantly carry out their lending activities digitally including through Unstructured Supplementary Service Data (USSD) codes.

Digital loan products include education loans, development loans, short-term personal loans, asset-financing and business loans. As of February 2026, licensed DCPs had granted 7.5 million loans valued at KSh133.5 billion.

Other applicants are at different stages in the process, largely awaiting the submission of requisite documentation.

CBK said reports by the public on unregulated DCPs can be sent through dcps@centralbank.go.ke. The licensing and oversight of DCPs as indicated previously, was precipitated by concerns raised by the public about the predatory practices of the unregulated DCPs, and in particular, their high cost, unethical debt collection practices, and the abuse of personal information.