• CBK licenses 27 more digital lenders, total now 153
• Sector disbursed $594M in loans by June 2025
• New draft rules propose tiered licensing, higher compliance fees

The Central Bank of Kenya (CBK) announced on Friday that it has granted 27 new licenses to digital credit providers (DCPs), bringing the total number of approved operators in the country to 153.

The announcement comes three months after 41 new players were authorized as part of an ongoing effort to formalize a booming sector that has faced criticism for abusive practices.

According to the CBK, approved institutions had disbursed 5.5 million loans worth a cumulative 76.8 billion shillings (about $594 million) as of the end of June 2025. These loans, typically granted through mobile apps and USSD services, cover a range of needs from personal and school financing to small business loans and leasing.

The Kenyan digital credit market, which emerged in the mid-2010s with rapid mobile penetration, has enabled millions of individuals and entrepreneurs to access financing often unavailable through traditional banks. In 2024, the Digital Financial Services Association of Kenya reported that nearly 8 million Kenyans accessed digital loans each month, totaling about 15 billion shillings monthly and nearly 180 billion over the year.

But this growth has been accompanied by persistent criticism related to the risks of over-indebtedness, aggressive collection practices, and annual effective interest rates that sometimes exceed 100%. Since the Digital Credit Providers Regulations came into force in March 2022, the CBK has received more than 700 license applications, with several hundred still under review.

Among the newly licensed entrants are Mwananchi Credit Limited, Aspire Lending Ltd, Bossrich Credit Limited, Brisk Credit Limited, Elevate Credit Limited, Fabilo Credit Ltd, Leaf Credit Limited, and Watu Credit Ltd. The regulator regularly publishes an official directory listing all authorized DCPs.

On August 7, the CBK also unveiled a draft regulation that would replace the current framework with a new regime for Non-Deposit Taking Credit Providers (NDTCPs), or credit companies that do not accept deposits. The draft proposes a tiered licensing system: companies with at least 20 million shillings in paid-up capital would need to obtain a full license, while smaller firms could register at a lower cost. Licensed entities would also be subject to annual fees of up to 500,000 shillings, increasing their compliance costs. The reforms are aimed at strengthening transparency, protecting consumers, and consolidating a sector that has become essential to Kenya's financial ecosystem, the regulator said.

Fiacre E. Kakpo