Between 2022 and 2025, licensed operators issued 5.5 million mobile loans to Kenyans. These loans had a total value of KES 76.8 billion, or about $594 million. A recent report from the Central Bank of Kenya (CBK) highlights how many Kenyans are now relying on digital credit.
Kenya’s digital credit market is proving to be profitable, as shown by the consistent interest of new entrants trying to join the industry. Part of the statement from the industry regulator says, “CBK has received more than 700 applications since March 2022 and has worked closely with the applicants in reviewing their applications.”
READ: Mobile Loans Gain Ground in Kenya’s Lending Market
The regulator has moved to tighten its grip on the mobile loans sector, adding stringent measures for existing players and new entrants. However, new loan providers continue to be licensed, as 27 new digital providers were licensed recently.
“This brings the number of licensed DCPs to 153 following the licensing of 41 DCPs announced in June 2025,” CBK notes in a statement.
These loans provides financing for a variety of needs, including education, personal expenses, business ventures, and asset acquisition.
New Laws for Mobile Loan Providers
Despite the stricter laws brought in 3 years ago, CBK is working on even stricter oversight of the digital credit sector. The bank recently released draft regulations, the Non-Deposit Taking Credit Providers Regulations, 2025, for public feedback.
The proposed rules would replace the existing Digital Credit Providers Regulations of 2022. They introduce a new tiered licensing system designed to close regulatory gaps. These include:
- Full License: Any credit provider with a minimum of KES 20 million ($155,000) in paid-up capital will be required to get a full license from the CBK. This will increase compliance costs, as licensed firms will also face annual charges of up to KES 500,000.
- Registration: Smaller credit providers will still need to register with the CBK.
The new rules, once finalized and published, will give firms a six-month window to comply.
