Central Bank of Kenya Expands Regulated Digital Lending Landscape with 27 New Approvals
In a significant stride towards formalizing its rapidly evolving financial technology sector, the Central Bank of Kenya (CBK) announced on September 5, 2025, the licensing of an additional 27 Digital Credit Providers (DCPs). This latest approval brings the total number of regulated digital lending institutions in the East African nation to 153. The move underscores the CBK’s unwavering commitment to integrating Kenya’s booming digital lending segment, a critical force driving financial inclusion across the region, into a robust and transparent regulatory framework. This ongoing effort aims to foster stability and trust within the vibrant Kenyan fintech ecosystem.
Strengthening Regulatory Oversight for Sustainable Fintech Growth
The recent authorization of these 27 DCPs follows closely on the heels of another licensing round in June 2025, which saw 41 digital lenders gain official approval. Demonstrating the immense interest in Kenya’s digital finance market, the Central Bank has received more than 700 applications from various lenders eager to operate under its comprehensive regulatory guidelines. This framework, initially instituted in March 2022, was specifically designed to mitigate and curb predatory practices that had previously plagued the sector. To ensure compliance and consumer protection, the CBK meticulously evaluates each application through a rigorous process. This rigorous assessment scrutinizes various aspects, including business models, governance arrangements, and the robustness of consumer protection terms. Furthermore, a key component of the licensing framework involves scrutinizing the fitness and suitability of shareholders and directors, ensuring that only reputable entities and individuals operate within the regulated space.
This continuous and methodical approach by the Central Bank of Kenya highlights its dedication to cultivating a secure, transparent, and fair digital lending environment. By bringing more DCPs under regulatory purview, the CBK not only safeguards consumers but also promotes responsible innovation and sustainable growth within Kenya’s pivotal financial inclusion landscape, setting a benchmark for the broader African tech sector.
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