The Central Bank of Kenya (CBK) has announced the licensing of 42 additional Digital Credit Providers (DCPs), increasing the total number of approved providers to 195, in a move expected to expand access to digital loans for millions of Kenyans.
In a statement dated Tuesday, December 30, 2025, CBK said this move followed the licensing of 27 DCPs in September 2025 under section 59 (2) of the Central Bank of Kenya.
“The Central Bank of Kenya (CBK) announces the licensing of an additional 42 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 195 following the licensing of 27 DCPs announced in September 2025,” read part of the statement.
However, since March 2022, CBK has received over 800 applications from companies seeking to offer digital credit.
CBK Licenses 42 Digital Credit Providers
According to CBK, the licensing process involves a thorough review of business models and an assessment of the fitness and propriety of shareholders, directors, and management.
In addition, CBK stated that the process aims to ensure compliance with relevant laws and safeguard customer interests.
“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. We acknowledge the efforts of the applicants and the support of other regulators and agencies in this process,” read part of the statement.
The Digital Credit Providers offer loans primarily through mobile platforms and USSD codes, covering products such as education loans, development loans, short-term personal loans, asset financing, and business loans.
As of November 2025, the licensed DCPs had issued 6.6 million loans valued at Ksh. 109.8 billion, demonstrating the rapid growth of digital lending in Kenya.
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CBK stated that other applicants are at various stages of the licensing process, with some still required to submit documentation. The regulator urged these applicants to provide the necessary information to complete their application reviews.
Meanwhile, Members of the public are encouraged to report unlicensed or unregulated DCPs via [email protected].
The oversight and licensing of DCPs were prompted by public concerns about predatory lending practices, including high costs, unethical debt collection, and misuse of personal information.
CBK recently licensed 27 New Digital Credit Providers
The Central Bank of Kenya (CBK) previously announced the licensing of an additional 27 Digital Credit Providers (DCPs).
CBK said the licensing is pursuant to Section 59(2) of the Central Bank of Kenya Act (CBK Act), bringing the total number of licensed DCPs to 153, following the licensing of 41 DCPs announced in June 2025.
“CBK has received more than 700 applications since March 2022 and has worked closely with the applicants in reviewing their applications,” read the notice in part.
The apex bank stated that other applicants are at various stages of the process, largely awaiting the submission of the required documentation.
“We urge these applicants to submit the pending documentation promptly to enable the completion of the review of their applications,” the bank noted.
According to CBK, the licensing and oversight of DCPs, as previously indicated, were prompted by public concerns over the predatory practices of unregulated DCPs, particularly their high costs, unethical debt collection practices, and misuse of personal information.
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CBK stated that the focus of engagements with DCPs has been, inter alia, on business models, consumer protection, and the fitness and propriety of proposed shareholders, directors, and management.
This, according to CBK, 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.
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