The Central Bank of Kenya (CBK) has 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, 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.
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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.
Earlier this month, CBK announced that it had granted licenses to 27 additional Digital Credit Providers (DCPs).
In a statement on Thursday, September 4, CBK said the new approvals have brought the total number of licensed DCPs to 153.
"The Central Bank of Kenya (CBK) has announced the licensing of an additional 27 Digital Credit Providers (DCPs), pursuant to Section 59(2) of the Central Bank of Kenya Act (CBK Act). This brings the total number of licensed DCPs to 153, following the licensing of 41 DCPs announced in June 2025," the statement read.
The regulator added that the licensing process remains ongoing, noting that many applicants are still required to meet compliance requirements.
"Other applicants are at different stages of the licensing process, largely awaiting the submission of requisite documentation. CBK urges these applicants to submit the pending documents promptly to enable the completion of their application reviews," the statement added.
CBK explained that the application process has been thorough to ensure that only credible and compliant lenders are licensed.
"Since March 2022, CBK has received more than 700 applications and has worked closely with applicants to review their submissions. The focus of these engagements has been on business models, consumer protection, and the fitness and propriety of proposed shareholders, directors, and management.
"These measures aim to ensure adherence to relevant laws and safeguard the interests of customers. CBK acknowledges the efforts of applicants and the support of other regulators and agencies in this process," the statement further read.
Among the newly licensed companies are Abito Limited, Ajax Credit Kenya Limited, Aspire Lending Ltd, Bossrich Credit Limited, Brisk Credit Limited, Easy Asset Management Limited and Easyways Credit Limited.
Others are Elevate Credit Limited, Finseil Limited, Futureinno Digital Tech Limited, Hanis Capital Limited, Lasiri Capital Limited and Leaf Credit Limited.
Little Limited (trading as SpotIt), Mayflower Capital Limited, Mednow Capital Limited, Moto Hope Capital Limited and Mwananchi Credit Ltd are also among the newly licensed firms.
