CBK approves 29 more digital lenders

The move comes after the licensing of another 25 digital credit providers in July, further expanding the number of lenders operating under CBK's oversight.

The Central Bank noted that it had received more than 900 applications from digital credit providers since 2022.

The regulator said its assessment process focuses on providers' business models, consumer protection measures and the fitness and propriety of proposed shareholders, directors and management.

CBK said the process is intended to ensure compliance with relevant laws and safeguard the interests of customers.

Other applications remain at different stages of the licensing process, largely awaiting the submission of the required documentation.

According to CBK, licensed digital credit providers had granted 9,596,509 loans valued at Ksh.165.1 billion as of August 2026.

The rapid expansion of digital lending comes as the sector faces increased scrutiny from the regulator.

The CBK's 2025 Bank Supervision Annual Report showed that the amount owed to licensed digital lenders nearly doubled in one year, rising from Ksh.55.2 billion at the end of 2024 to Ksh.110.1 billion by December 2025.

During the same period, the number of licensed digital lenders increased from 85 to 195 after the CBK approved 110 additional providers.

Outstanding digital credit surpassed Ksh.100 billion in September 2025 before reaching Ksh.110.1 billion at the end of the year.

The number of loan accounts also increased from about four million to 6.7 million, representing a growth of roughly 71 per cent in one year.

The CBK noted that loan accounts do not necessarily represent individual borrowers, as one customer can have more than one loan account.

Digital lending has also expanded beyond short-term personal loans, with licensed providers offering credit for business, agriculture, education and asset purchases through mobile applications and USSD platforms.

As the sector continues to grow, the regulator is strengthening oversight of loan pricing, lending practices and the use of customer data, with a focus on transparent pricing, responsible lending and consumer protection.