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Central Bank of Kenya has Approved 27 New Digital Lenders
The Central Bank of Kenya has approved 27 new digital lenders, adding more trusted players to Kenya’s fast-growing digital credit market. This latest move means there are now 153 licensed digital credit providers in the country. It’s an important step that shows how the Central Bank of Kenya is working hard to bring more order and safety into the digital lending space.
Kenya’s new digital lenders will help more people access money quickly and easily through their phones. Digital lending has become really popular because it offers fast loans for all sorts of needs – from paying school fees to supporting small businesses. By June 2025, these licensed lenders had given out over 5.5 million loans worth nearly 77 billion shillings (around $594 million). This clearly shows just how many Kenyans rely on digital loans every day.
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The Central Bank of Kenya has approved new digital lenders carefully. Since March 2022, the Bank has been licensing digital credit providers under strict rules designed to stop unfair practices like charging very high interest or misusing personal information. So far, more than 700 companies have applied to be licensed, but only those meeting high standards for their business and how they treat customers get approved.
The Central Bank is clear that only firms with trustworthy shareholders, directors, and management can be allowed to operate. This is to make sure the digital lending market stays safe and professional. The licenses also push lenders to follow stronger rules that protect borrowers.
In Kenya, digital credit providers use mobile technology like apps, USSD codes, and agents distributed around the country to reach people. These platforms offer many loan types, including quick personal loans, education loans, business loans, and even asset-backed credit. The Central Bank of Kenya has approved 27 new digital lenders who will join this important market.
The growth of Kenya’s new digital lenders is not just about loans. Licensed providers also help finance about 100,000 smartphones each month, which helps more people access the internet and take part in the digital economy. This shows how digital lending is linked with improving financial inclusion and technology use in Kenya.
For many Kenyan families, digital loans are a lifeline. They offer cash quickly for emergencies, education costs, or covering unexpected expenses. Small business owners also turn to these apps for working capital, and many motorcycle taxi drivers use loans to buy or repair their bikes so they can keep earning.
The numbers behind this are impressive. Digital credit apps lend around $3.85 million (about 500 million Kenyan shillings) every day. That adds up to about $115 million (15 billion shillings) every month. Over eight million people in Kenya, which is about 16 percent of the population, borrow on these platforms monthly. More regulated lenders mean more choices and safer borrowing for Kenyans.
Since starting these regulations, the Central Bank of Kenya has seen real improvements. According to the Digital Financial Services Association of Kenya (DFSAK), complaints from borrowers about high interest rates and poor debt collection have dropped a lot. This shows that the Central Bank’s licensing and the industry’s own efforts are making digital lending more trustworthy.
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The Central Bank also encourages companies that want to join the market to apply quickly and asks the public to report any unlicensed digital lenders. These steps help keep borrowers safe and protect Kenya’s financial system.
With the Central Bank of Kenya having approved 27 new digital lenders, the country is showing how good regulation can make a previously risky market safer and more reliable. More licensed lenders mean better credit options for Kenyans and a stronger, more transparent financial sector. The Central Bank of Kenya has approved 27 new digital lenders as part of its clear goal to protect consumers while helping Kenya’s digital lending industry grow in a responsible way.
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