The Central Bank of Kenya licensed 29 additional digital credit providers under the country’s central-bank law. The approvals raised the number of licensed providers to 281. They followed a July round that added 25 providers. The regulator announced the new licences on 30 September.
The central bank said it had received more than 900 applications since March 2022. Its reviews cover business models, consumer protection and the fitness and propriety of proposed shareholders, directors and managers. Other applicants remain at different stages, many awaiting submission of required documents. The regulator asked them to provide the outstanding information promptly.
LOANS GRANTED BY LICENSED PROVIDERS
Licensed providers had granted 9,596,509 loans worth KSh165.1 billion by August 2026, according to the central bank. Their products include education and development loans, short-term personal credit, asset finance and business lending. Providers lend predominantly through digital channels, including USSD codes.
The licensing regime followed public concerns about unregulated lenders. The central bank cited high costs, unethical debt collection and misuse of personal information among the problems that prompted oversight. It continues to invite reports from the public about providers operating outside the regulated framework.
MORE APPLICATIONS REMAIN UNDER REVIEW
The new approvals expand the regulated market but do not complete the licensing process. Applications still under review must satisfy legal, governance and consumer-protection requirements. The central bank did not specify when the next group of decisions would be issued.
For now, the confirmed outcome is 29 new licences and a total of 281 approved providers.