Kenya licenses 29 more digital lenders as regulated loan book reaches KSh165.1 billion
The Central Bank of Kenya says licensed digital lenders had issued 9.6 million loans worth KSh165.1 billion by August 2026.
The Central Bank of Kenya has licensed another 29 digital credit providers, taking the number of approved firms to 281. The regulator announced the new licences on September 30 after reviewing applicants' business models, ownership, management and consumer protection measures.
CBK has received more than 900 applications since March 2022. Some remain under review because the applicants have not submitted all the required documents. The latest approvals follow another group of 25 providers licensed in July.
A large market under closer supervision
Licensed providers had issued 9,596,509 loans worth KSh165.1 billion by August 2026, according to the central bank. Their products include short-term personal credit, education and business loans, development finance and asset financing. Applications and repayments are commonly handled through mobile apps, websites and USSD services.
The size of that loan book explains why licensing is more than an administrative exercise. Digital lenders can reach borrowers quickly, including people and small businesses that may struggle to qualify for conventional bank loans. The same speed can expose customers to unclear charges, aggressive collection methods or misuse of their contacts and personal information.
Why CBK regulates digital lenders
CBK says public complaints about unregulated lenders prompted the licensing framework. The complaints included high borrowing costs, unethical debt collection and abuse of personal data. Licensed providers must meet the requirements set under the Central Bank of Kenya Act and the Digital Credit Providers Regulations.
A licence does not mean that every loan is affordable or suitable for every borrower. Customers still need to check the total cost, repayment date and consequences of missing a payment. The public can report lenders operating without authorisation to CBK, while the regulator maintains an online directory of approved providers.
The addition of 29 firms gives borrowers a longer list of regulated options, but it also increases the work required to supervise conduct across the market. Enforcement and clear consumer information will determine whether licensing translates into safer borrowing in practice.
The latest numbers also show how quickly digital credit has become part of Kenya's retail finance system. An average calculated from CBK's totals comes to roughly KSh17,200 per loan, although the regulator's figure covers products of different sizes and purposes. It should not be read as the price or typical balance of one specific loan product.
For providers still waiting, CBK says incomplete documentation is a major reason applications remain unresolved. That puts pressure on companies to show who owns and manages them, how their lending model works and what safeguards protect borrowers. For customers, the public directory is the simplest first check before installing an app or sharing personal information. A provider missing from that list should not be treated as authorised simply because its service is available online.