Kenya's Lending Growth Regulated
Central Bank of Kenya Licenses 25 New Digital Lenders, Total Reaches 252
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Key Points
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Baecot Credit Ltd is among the newly licensed Digital Credit Providers (DCPs) in the July 2026 licensing batch.
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The July 14, 2026 licensing round added 25 DCPs, following an earlier batch in April 2026 that licensed 32 providers, bringing total licensed DCPs to 252.
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The CBK published an updated Directory of Digital Credit Providers on July 9, 2026, detailing licensed lenders’ names, addresses, contact information, and licensing dates.
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The CBK urged the public to report unregulated digital lenders via the dedicated email address dcps@centralbank.go.ke to help curb illegal lending.
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The licensing framework emphasizes transparency on ultimate beneficial ownership, strong data protection, and strict adherence to AML rules as part of the vetting process for DCPs.
Kenya's Central Bank has licensed 25 more digital lenders, pushing the total number of regulated mobile loan providers to 252, according to Business Today Kenya. The move comes as Kenyans borrowed roughly KSh 150.5 billion through 8.37 million digital loans as of May 2026 — a sign of how fast the sector is growing.
The Central Bank of Kenya (CBK) approved the latest batch on July 14, 2026, under Section 59(2) of the CBK Act. The regulator has now processed more than 800 applications since it began licensing digital lenders in March 2022, Tuko reported.
25 New Lenders Approved in July 2026 Batch
The July round follows an earlier April 2026 batch that added 32 providers, according to Streamline Feed. New names on the licensed list include Abepot Credit Limited, Avenews Ke Ltd, Baraka Credit Limited, Abito Limited, and Baecot Credit Ltd, among others.
The CBK also published an updated Directory of Digital Credit Providers on July 9, 2026. The directory lists each lender's name, address, contact details, and licensing date, Nairobi Leo reported. The CBK says the list helps the public quickly check if a lender is legally operating.
KSh 150 Billion in Loans Shows Rapid Market Growth
Digital lending in Kenya has expanded sharply. Licensed platforms disbursed about 8.37 million loans worth KSh 150.5 billion as of May 2026, according to Business Today Kenya. That figure reflects strong demand for quick mobile credit among Kenyan borrowers.
The CBK has reviewed all 800-plus applications carefully. Regulators check each company's business model, consumer protection measures, and the backgrounds of shareholders and managers before granting a license, Dawan Africa reported.
Strict Vetting Targets Ownership, Data, and Money Rules
Getting a license is not easy. The CBK requires full transparency on who ultimately owns each company. Lenders must also show strong data protection practices and strict compliance with anti-money laundering (AML) rules, according to Streamline Feed.
AML rules are designed to stop criminals from using loan apps to move dirty money. The CBK says it checks these controls closely before approving any new provider, Nairobi Leo reported.
CBK Urges Public to Report Illegal Lenders Immediately
Despite the progress, unlicensed lenders remain a problem. The CBK urged Kenyans to report any unregulated digital lender to dcps@centralbank.go.ke, according to Tuko. Illegal lenders often charge hidden fees and use harsh tactics to collect debts.
The regulator says consumer protection is a top priority. Anyone using a digital loan app should first check the CBK's published directory to confirm the lender is licensed. Reporting bad actors helps the CBK act faster against exploitative platforms, Business Today Kenya noted.
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