The number of approved Digital Credit Providers (DCPs) is now at 153 after the Central Bank of Kenya (CBK) granted operating licenses to 27 more digital lenders as of September 2025, a direction that was taken after the clearance of 41 firms earlier in June following a critique made towards the sector for predatory lending, lack of transparency and consumer abuse.
This move by the Central Bank further enlarges the country`s formal digital lending landscape and also reflects CBK`s effort to regulate the sector from the stated criticism. Some of the approved lenders include; Mwananchi credit, Platinum credit limited and Bossrich credit limited, that have been directed to adhere to the provisions of the Central Banks digital credit providers regulation 2022, which requires uncompromised consumer protection standards, responsible lending practice and safeguarding of customer data.
Additionally, the DCPs regulations 2022, is likely to strengthen accountability from lenders, increase consumer trust and widen the access to formal credit to both businesses and consumers. This will in turn mitigate predatory practices like unfair loan terms, high interest rates that were prevalent previously.
The entry of more DCPs, is positioned to bridge the gaps where conventional credit may not reach, as Central Bank noted that as of June 2025, licensed DCPs had disbursed 5.5million loans valued at KES. 76.8 billion.
Earlier on in August 7, CBK issued draft regulations for Non-Deposit Taking Credit Providers (NDTCPs) a structure set to replace the digital providers regulations,2022. The draft presents a levelled licensing system requiring firms with at least KES. 20million paid up capital to hold full licenses, while smaller operators can register at lower fees. According to the draft, licensed entities would also face annual charges of up to KES. 500,000 raising compliance cost for the sector.
