Kenya’s digital credit market has grown rapidly from 2022 to 2025 with 5.5 million mobile loans issued worth KES 76.8 billion (approximately $594 million). This is a clear indication that Kenyans are relying more and more on digital credit which has become a key player in the lending space. According to the Central Bank of Kenya (CBK) report, the number of mobile loans and total loan value shows how digital credit is financing personal, business and educational expenses.
More Digital Loan Providers
Kenya’s digital credit space is attracting both new and existing players. Since March 2022, CBK has received over 700 applications from companies wanting to join the market. Despite the rapid growth, the regulator has ensured strict oversight by introducing tougher regulations to manage the growth. CBK has licensed 27 new digital credit providers (DCPs) bringing the total to 153 with 41 new providers licensed as of June 2025.
This continued interest in the space shows how profitable and viable digital credit is in Kenya where mobile loans cater to a wide range of needs including education, personal expenses, business ventures and asset acquisition. The influx of new loan providers shows digital credit has become a vital tool in Kenya’s financial ecosystem.
Stricter Rules for Mobile Loan Providers
In response to the growing number of digital lenders and the risks associated with mobile loans, CBK has proposed even stricter rules for the sector. These rules come in the form of the Non-Deposit Taking Credit Providers Regulations, 2025 which will address the regulatory gaps in the current framework. The new draft regulations are open for public feedback and will replace the Digital Credit Providers Regulations of 2022 and introduce a tiered licensing system for credit providers.
The new rules will set clear requirements for companies wanting to operate in Kenya’s mobile loan space. CBK will require credit providers with a minimum paid up capital of KES 20 million ($155,000) to get a full license. This will ensure only well capitalized companies can offer digital credit services which will increase consumer protection and transparency. Licensed providers will also pay annual fees of up to KES 500,000.For smaller companies a registration with CBK will be enough. However all digital credit providers will have to comply with the new rules within six months of their publication.
Growth and Regulation in Balance
The regulations show CBK’s commitment to a balanced approach to Kenya’s digital credit market. On one hand the regulator recognizes the benefits of mobile loans in increasing financial inclusion and economic activity. On the other hand it recognizes the need for strict oversight to mitigate the risks of over indebtedness, fraud and other financial mismanagement issues that come with rapid growth.