THE DEVELOPMENT
The Central Bank of Kenya (CBK) has licensed an additional 32 Digital Credit Providers (DCPs) pursuant to Section 59(2) of the Central Bank of Kenya Act, bringing the total number of licensed DCPs to 227. This follows the licensing of 42 DCPs in December 2025. Since March 2022, CBK has received over 800 applications and continues to process outstanding submissions. As of February 2026, licensed DCPs had collectively disbursed 7.5 million loans valued at Ksh. 133.5 billion.
KEY REGULATORY CONTEXT
CBK’s licensing framework scrutinizes applicants on business models, consumer protection, fitness and propriety of shareholders, directors, and management. DCPs primarily operate through digital channels including USSD codes, offering products ranging from education and development loans to asset-financing and business loans. Unregulated DCPs remain a regulatory target, with the public encouraged to report them to dcps@centralbank.go.ke.
IMPLICATIONS FOR STAKEHOLDERS
Fintech lenders and digital credit businesses still awaiting licensing should treat CBK’s call to submit outstanding documentation as urgent, delays risk prolonged exclusion from the market as the regulatory window tightens.
Newly licensed DCPs must ensure their operations, particularly debt collection practices and personal data handling, are fully compliant to avoid enforcement action, given CBK’s stated focus on predatory lending and data abuse. Investors and strategic partners conducting due diligence on DCP targets should verify licensing status against CBK’s published register before transaction close.