The Central Bank of Kenya announced the addition of 29 digital credit providers (DCPs) to its register, increasing the number of licensed lenders in the sector to 281.

The approvals were issued under Section 59(2) of the CBK Act, according to a press release dated September 30.

The licensing process evaluates each applicant’s business model, consumer‑protection measures and the fitness of its shareholders, directors and managers.

Since March 2022, the regulator has received more than 900 applications from firms seeking entry into the digital lending market.

The CBK noted that several applicants remain in the pipeline, with pending documentation that the bank has urged to be submitted promptly for review completion.

Licensed DCPs operate primarily through digital channels such as USSD codes, offering products that include education loans, short‑term personal credit, asset financing and business loans.

As of August, the sector had disbursed 9,596,509 loans amounting to Ksh165.1 billion, reflecting the scale of credit now under regulatory oversight.

The licensing drive follows concerns over unregulated operators accused of high interest rates, aggressive collection practices and misuse of personal data, prompting the CBK to urge the public to report such activities.

Legal risks for unlicensed lenders were highlighted in July when a Small Claims Court ruled that an unlicensed entity could not enforce its lending claims.