The Central Bank of Kenya (CBK) has announced the licensing of 42 additional Digital Credit Providers (DCPs), bringing the total number of licensed operators to 195 as the regulator intensifies oversight of the digital lending sector.
In a statement released on Tuesday, December 30, the apex bank confirmed that the new licenses were issued pursuant to Section 59(2) of the Central Bank of Kenya Act, adding to the 27 DCPs previously licensed in September 2025.
The licensing milestone follows CBK's receipt of more than 800 applications since March 2022, with the regulator working closely with applicants to review their submissions and ensure compliance with regulatory standards.
"The focus of the engagements with DCPs has been on their business models, consumer protection and fitness and propriety of proposed shareholders, directors, and management," CBK stated, emphasizing its commitment to safeguarding consumer interests.
According to the statement, Digital Credit Providers predominantly carry out their lending activities digitally through Unstructured Supplementary Service Data (USSD) codes and smartphone applications.
Read More
Their products include education loans, development loans, short-term personal loans, asset financing, and business loans.
As of November 2025, licensed DCPs had granted 6.6 million loans valued at Ksh.109.8 billion, highlighting the significant role of digital lending in Kenya's financial sector.
The Central Bank noted that details of the 195 licensed DCPs can be accessed on its website, while other applicants at different stages of the licensing process are awaiting the submission of requisite documentation to enable completion of their review and approval.
The regulator has also established a reporting mechanism for the public to flag concerns about unregulated DCPs, with reports being channeled through [email protected].
The intensified regulation of digital credit providers was precipitated by public concerns over predatory lending practices by unregulated operators, including the charging of exorbitant interest rates, high costs, unethical debt collection practices, and the abuse of personal information.
Meanwhile, the Central Bank has also released its indicative foreign exchange rates for December 30, 2025, with the US Dollar trading at Ksh.129.0000, the Sterling Pound at Ksh.174.3371, and the Euro at Ksh.151.9169.
Regional currencies include the Uganda Shilling at Ksh.28.0388, Tanzania Shilling at Ksh.19.1667, Rwanda Franc at Ksh.11.2902, and the South African Rand at Ksh.7.7439.
