CBK Licenses 41 More Digital Lenders, Bringing Total to 126

The Central Bank of Kenya (CBK) has issued licenses to 41 additional Digital Credit Providers (DCPs), pushing the total number of approved lenders in the country to 126—up from 85 in October 2024.

CBK has been pushing to bring sanity and order in the mobile lending space as the country witnesses a growing digital lending market.

“The Central Bank of Kenya (CBK) announces the licensing of an additional 41 Digital Credit Providers (DCPs). This is pursuant to Section 59(2) of the Central Bank of Kenya Act (CBK Act),” the regulator stated in its latest update.

Since it began accepting applications in March 2022, CBK has received over 700 submissions from firms seeking approval to operate as digital lenders.

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The evaluation process has involved close collaboration with key regulatory bodies, including the Office of the Data Protection Commissioner, to assess business models, data protection practices, leadership integrity, and consumer protection measures.

The licensing of the DCPs was introduced in response to growing public concern over the operations of unregulated digital lenders, many of whom were accused of unethical debt collection tactics and misuse of borrowers’ personal information.

CBK said licensing of the DCPs was about building public trust and shiledling consuder, other than regulatory compliance.

The bank has urged all pending applicants to submit the required documentation promptly to conclude their review and licensing process.