The Central Bank of Kenya (CBK) announced the issuance of 27 new licenses for digital lenders, increasing the number of licensed operators in the country to 153. This decision is part of the regulator's efforts to formalize the rapidly growing digital lending sector.
Licensing Digital Credit Providers in Kenya
The new licenses were issued on September 5, 2025, only three months after 41 providers were licensed in June 2025. Since the introduction of the regulatory framework in March 2022, over 700 applications from lenders seeking licenses have been submitted. CBK stated that each application undergoes rigorous checks of business models and consumer protection terms.
The Digital Lending Market and Its Growth
Digital lenders in Kenya play a crucial role in the financial sector by utilizing mobile channels. By June 2025, registered providers had disbursed 5.5 million loans worth Ksh 76.8 billion ($593.7 million), reflecting the country’s increasing reliance on mobile financial services.
Implications of Regulatory Growth for Borrowers and the Economy
It is estimated that Kenyans borrow about $3.85 million (Ksh 500 million) daily. This has significant implications for both consumers and the economy at large. The CBK believes that regulation is central to the stability and growth of the sector.
Licensing additional providers allows Kenya to advance toward a more inclusive and transparent credit market, facilitating access to financial services for a wider audience.
