CBK Announces Licensing of 25 New Digital Credit Providers

The Central Bank of Kenya (CBK) has announced the licensing of 25 additional Digital Credit Providers (DCPs).

In a statement on Tuesday, July 14, the bank said the latest approvals bring the total number of licensed DCPs to 252.

"The Central Bank of Kenya (CBK) announces the licensing of an additional 25 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 252 following the licensing of 32 DCPs announced in April 2026," the statement read.

CBK noted that it has handled a large number of applications since the licensing framework came into effect and has continued reviewing them in collaboration with applicants.

"CBK has received more than 800 applications since March 2022 and has worked closely with the applicants in reviewing their applications," the statement added.

According to the bank, the review process has focused on assessing the business operations of applicants, consumer protection measures and the suitability of their shareholders, directors and management teams.

"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," the statement explained.

CBK said the assessments are intended to ensure that licensed digital lenders comply with the law while protecting customers who rely on their services.

"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," the statement further read.

CBK also highlighted the role played by Digital Credit Providers, noting that they mainly provide loans through digital platforms, with products ranging from education and business loans to asset financing and short-term personal credit.

"DCPs predominantly carry out their lending activities digitally including through Unstructured Supplementary Service Data (USSD) codes. Loan products include education loans, development loans, short-term personal loans, asset-financing and business loans," the statement noted.

CBK added that while more firms have now been licensed, many other applicants are still undergoing the approval process and urged them to submit any outstanding documents to facilitate the completion of their applications.

"Other applicants are at different stages in the process, largely awaiting the submission of requisite documentation. We urge these applicants to submit the pending documentation expeditiously to enable completion of the review of their applications," the statement concluded.

This comes months after CBK unveiled draft regulations targeting credit guarantee businesses, following amendments to the CBK Act under the Business Laws (Amendment) Act, 2024.

In a notice on Thursday, September 25, 2025, CBK said the move is part of efforts to strengthen regulation and supervision in the sector.

The regulator said the proposed framework will enhance transparency and ensure that only credible entities are allowed to operate under the new legal regime.

"In this regard, licensed, very entity undertaking credit guarantee business will be required to be registered to carry on and will only be licensed once minimum governance, business conduct and prudential standards consistent with the strengthened prudential laws have been met. 

"The draft regulations are intended to provide a transparent and predictable framework to ensure that only credible operators are licensed by CBK within these prescribed standards," the notice read.

According to CBK, the guidelines are designed to provide a clear framework for licensing, supervision, and governance of credit guarantee operators in the country.

"The draft Regulations cover key aspects including: licensing, governance, business management and other operational requirements for registration, licensing, governance, business risk management and other operational requirements for entities undertaking credit guarantee business," the notice added.