The Central Bank of Kenya (CBK) has licensed 41 additional Digital Credit Providers (DCPs), increasing the total number of licensed providers to 126. This move marks a major milestone in the regulator’s mission to ensure transparency, consumer protection, and ethical lending practices in Kenya’s fast-growing digital finance ecosystem.

This announcement comes amid rising demand for regulated digital lending services and is aligned with CBK’s continued efforts to sanitise the sector.

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Why CBK is licensing digital credit providers

CBK began accepting applications from digital lenders in March 2022, following growing public concerns over predatory interest rates, data privacy violations and harsh or unethical debt collection methods.

To date, CBK has received more than 700 applications. The regulator conducts thorough vetting by assessing business models, consumer protection frameworks, and the integrity of directors and shareholders before issuing a license.

In its statement, CBK emphasised ongoing collaboration with other regulatory bodies, such as the Office of the Data Protection Commissioner, to ensure DCPs comply with Kenya’s legal and data protection standards.

CBK also encouraged digital lenders still in the application pipeline to submit pending documentation promptly to avoid delays in the vetting process.

The licensing of 41 new DCPs reinforces Kenya’s position as a continental leader in regulated fintech innovation. It also signals to consumers and investors that the digital lending space is maturing, with greater emphasis on ethical lending, data privacy, and responsible innovation.

Kenyans are advised to verify whether a digital lender is licensed before engaging. CBK publishes and updates the list of licensed providers regularly on its official website.