281 digital lenders in Kenya: How does the CBK regulate loan apps?

The phone has become one of Kenya's busiest lending counters.

On September 30, the Central Bank of Kenya licensed another 29 Digital Credit Providers, bringing the number of licensed providers to 281.

CBK says it has received more than 900 applications since March 2022, when formal supervision of the sector began.

By August 2026, licensed digital lenders had granted 9,596,509 loans worth Sh165.1 billion.

That is a sizeable credit market built largely around mobile phones, USSD codes and apps.

Loan apps tagged under CBK

Digital lenders expanded rapidly before Kenya introduced a dedicated licensing regime.

CBK's intervention followed complaints about high borrowing costs, aggressive debt collection and misuse of personal information by previously unregulated providers.

Parliament gave the Central Bank powers to license and supervise digital credit providers through the Central Bank of Kenya (Amendment) Act, 2021.

The Digital Credit Providers Regulations took effect on March 18, 2022.

A lender offering digital credit now needs a CBK licence where it falls within the regulated category.

CBK requires lenders to disclose

The regulations require digital lenders to give borrowers clear information before a loan is taken.

The terms should state the loan amount, charges, interest rate, other fees, repayment dates, total cost of credit and annual percentage rate, together with channels for lodging complaints.

The information must be presented in a clear and accessible form.

The rules also restrict misleading advertising.

A lender cannot advertise a credit product using false or deceptive information about its interest rate, costs or charges.

Data regulation

Digital lending often involves information supplied through a mobile phone, which made data privacy one of the regulator's central concerns.

CBK's regulatory framework addresses the abuse of personal information alongside consumer protection, credit-information sharing and market-conduct requirements.

The objective is broader than simply licensing loan apps.

The rules are intended to bring lending practices, customer treatment and information handling under regulatory oversight.

How to check a loan app

CBK publishes a directory of licensed Digital Credit Providers.

The regulator's latest licensing notice specifically encourages consumers to check providers against its licensed list and provides dcps@centralbank.go.ke for reports concerning unregulated digital lenders.

A lender appearing in an app store is therefore not, by itself, proof that it is authorised to offer digital credit in Kenya.

281 lenders

The growing register does not mean 281 companies have an identical business model.

CBK says licensed providers offer products including short-term personal loans, education loans, development loans, asset financing and business credit.

Some operate through mobile applications, while others use USSD and other digital channels.

More than 900 applications have passed through the regulator's licensing pipeline, with some applicants still waiting to submit required documents.

For borrowers, the practical calculation remains the same before taking any digital loan:

How much is being borrowed, how much will actually be repaid, when is it due, and is the provider licensed?

With nearly 9.6 million loans worth Sh165.1 billion already issued by licensed providers, digital credit is firmly embedded in Kenya's financial system.