The Central Bank of Kenya (CBK) has ushered in the new year with a decisive expansion of the regulated credit market, greenlighting 42 additional Digital Credit Providers (DCPs) to bring the total count of authorized lenders to 195.

This latest wave of approvals represents a critical pivot in the war against "shylock" tactics in the digital age. By bringing more players under the regulatory umbrella, the CBK aims to sanitize a sector historically marred by exorbitant interest rates, debt shaming, and the weaponization of private data.

The Purge of Predatory Lending

The journey to this point has been rigorous. Since March 2022, the regulator has sifted through over 800 applications, rejecting those that failed to meet strict thresholds on business viability and leadership integrity. The CBK emphasized that the vetting process is not merely administrative but a protective shield for the Kenyan borrower.

According to the regulator, the primary focus has been eliminating the "wild west" mentality that once defined mobile lending. The specific criteria for approval included:

• Business Model Viability: Ensuring the lender is financially stable and not a fly-by-night operation.
• Consumer Protection:Mandating transparent pricing and prohibiting harassment during debt collection.
• Fitness and Propriety: rigorous background checks on shareholders, directors, and management to weed out bad actors.

“The focus of our engagements with DCPs has been on business models, consumer protection, and the fitness and propriety of proposed shareholders,” the CBK noted in a communique. “These measures ensure adherence to the relevant laws and, importantly, safeguard the interests of customers.”

A KES 109 Billion Lifeline

The scale of the digital lending economy cannot be overstated. As of November 2025, licensed DCPs had disbursed a staggering 6.6 million loans valued at KES 109.8 billion. For millions of Kenyans—from the mama mboga needing stock at dawn to the student covering emergency fees—these platforms, often accessed via USSD, are the first line of financial defense.

This announcement follows a similar clearance of 27 providers in September 2025, signaling a steady, deliberate pace by the regulator. The message to the market is clear: compliance is no longer optional. As the list of approved lenders grows, the operating space for unregulated, predatory apps shrinks, offering Kenyans a safer financial ecosystem as they navigate the economic demands of 2026.