By the 254.ke Newsroom
The Central Bank of Kenya (CBK) on September 30, 2026 licensed 29 more digital credit providers, lifting the number of regulated mobile and app-based lenders to 281. If you borrow through a phone app or USSD code, the practical test is simple: the lender should appear on CBK’s list of licensed digital credit providers, and from July a court ruling reported by Kenyans.co.ke means unlicensed lenders cannot enforce their claims.
How many digital lenders has CBK licensed in 2026?
The new batch is the third large one this year. CBK licensed 32 lenders in April, taking the total to 227, then 25 in July (252), and now 29 more. That is 54 licences in about three months. The regulator says it has received more than 900 applications since licensing began in March 2022, and that many are still pending because applicants have not submitted all their documents.
- April 2026: 32 licensed, total 227
- July 2026: 25 licensed, total 252
- September 30, 2026: 29 licensed, total 281
CBK said it assesses each applicant’s business model, consumer protection arrangements, and the fitness and propriety of proposed shareholders, directors and management. It urged applicants still waiting to “submit the pending documentation expeditiously” so their reviews can be completed.
How big is Kenya’s digital lending market?
Large. Licensed lenders issued 9,596,509 loans worth Sh165.1 billion by August 2026, according to figures cited by Kenyans.co.ke, Pulse Kenya and Citizen Digital. In May alone, licensed lenders issued about 8.4 million loans valued at roughly Sh150.6 billion, based on figures reported at the time of the July licensing round.
Outstanding digital credit reached Sh110.1 billion at the end of 2025, almost double the Sh55.2 billion recorded in 2024, Citizen Digital reported. Loans on offer range from short-term personal credit and education loans to asset financing and business credit, mostly through mobile apps and USSD.
Why does the licence matter to a borrower?
The licensing regime exists because of complaints about high borrowing costs, aggressive and unethical debt collection, and misuse of borrowers’ personal data. A licensed lender is accountable to CBK on those fronts. An unlicensed one is not.
Kenyans.co.ke reports that a July 2026 court ruling established that unlicensed lenders cannot enforce lending claims. That does not erase a debt you took in good faith, but it does shift the risk onto lenders who skipped the licence, and it is one more reason to check before you borrow.
How can you check if a lender is licensed?
- Find the lender’s exact registered name in the app’s terms and conditions, not just the brand on the app store.
- Compare it against the list of licensed digital credit providers published by the Central Bank of Kenya.
- Be wary of any app that asks for contact-list or gallery access, or that threatens to message your contacts over a late payment.
- Report unlicensed operators to CBK, which runs an email channel for the purpose.
What this means for borrowers in 2026
More licensed names does not mean cheaper credit, and a licence is not a recommendation. Borrowers still need to compare the full cost of a loan, including fees and the repayment period. With prices still climbing and loan deadlines such as the HELB repayment cut-off catching many households short, short-term digital loans remain a common stopgap. Parallel changes to the rules for mobile money are also coming, as set out in the National Payment System Bill 2026.
Frequently asked questions
How many licensed digital lenders are there in Kenya?
As of September 30, 2026, CBK has licensed 281 digital credit providers, after approving 29 more that day.
Is it safe to borrow from an app that is not on CBK’s list?
It carries more risk. Unlicensed lenders sit outside CBK oversight, and a July 2026 court ruling reported by Kenyans.co.ke says they cannot enforce lending claims. Verify first.
How much have licensed lenders disbursed?
About 9.6 million loans worth Sh165.1 billion by August 2026.
Where do I report an unlicensed lender?
CBK urges the public to report unlicensed operators through its designated email channel, listed on its website.
Reporting based on CBK’s announcement of September 30, 2026 as carried by Kenyans.co.ke, Citizen Digital and Pulse Kenya.
