A Brief Recap: What Happened in 2022–2023?
In 2022, CBK began regulating digital lenders after years of complaints over hidden fees, debt-shaming tactics and misuse of personal data. Many unregistered lenders were shut down. By early 2023, only a few were left.
This forced a reset — where only licensed lenders with ethical practices and better customer service could survive. It also paved the way for a healthier and more competitive industry in 2024 and beyond.
Why Digital Lending is Booming in 2025
CBK Licensing: There are now over 50 fully licensed digital credit providers, including Branch, Tala, Zenka, Zash, Safaricom's M-Shwari and Fuliza, NCBA Loop, and KCB M-PESA.
Better Regulation: Lenders must disclose all terms upfront and are not allowed to debt shame or aggressive data access.
More Use Cases: Loans are not just for emergencies but for school fees, business capital and rent — a sign of growing trust.
Higher Limits: Borrowers with good repayment history are now getting higher limits, sometimes up to KSh 100,000 or more.
Popular Digital Lenders in Kenya (2025)
Some of the top digital lending platforms that are licensed and active in Kenya include:
Fuliza: Now more business oriented, with a new “Fuliza Biz” product
Zenka: Offers flexible repayment plans and loyalty rewards
Branch and Tala: Fast approval and transparent fees
PesaPap by Family Bank: One of the few bank backed options with growing traction
Faraja by Safaricom & Equity: Buy Now, Pay Later (BNPL) option for daily purchases
Be Careful
Despite the improvements, borrowers should still be cautious:
Interest Rates: Some apps still charge high annualized rates — check the APR.
Data Access: Only grant permissions that are necessary. Don’t give apps access to your contacts or SMS unnecessarily.
Default Consequences: Failing to repay will still affect your CRB score and may block you from future formal credit.
Borrow Responsibly
Use loans for productive purposes like inventory, bills or emergencies
Check interest rates and terms using CBK’s approved lender list
Summary
Digital lending in Kenya is moving fast — with better regulations, more competition and safer options. It’s easier than ever to get instant loans on your phone but it’s more important than ever to borrow wisely. 2025 is all about convenience with responsibility.