The Central Bank of Kenya has granted licences to 32 more digital credit providers, pushing the total number of regulated lenders to 227 and reinforcing a sector that has now issued loans worth KSh 133.5 billion.
The approvals, announced on 14 April 2026, mark the first batch of licences this year, following another 42 issued in December 2025. Since the regulator opened applications in March 2022, over 800 firms have applied, with only 227 successfully navigating the rigorous approval process, translating to an acceptance rate of about 28 percent.
Among the newly licensed firms is Kopo Kopo Inc. Kenya Limited, a well-established player founded in 2012 as a Safaricom payments partner. The company provides merchant cash advances by leveraging M-Pesa transaction data, with repayments deducted as a share of daily sales. Its licence formalises an already active lending operation rather than signalling a fresh market entry. Kopo Kopo’s acquisition by Nigerian fintech Moniepoint in 2023 adds further weight to the approval as the firm seeks to expand its footprint in Kenya.
Other notable entrants include Inkomoko Capital Kenya Limited, linked to a pan-African SME development organisation; Izwe Loans Kenya Limited, part of the wider Izwe Africa lending group; and Hakki Africa Limited, which focuses on financing smallholder farmers. The new licences also highlight expansion beyond Nairobi, with firms such as Kechita Capital Investment in Machakos and Quickflex Ventures in Nanyuki, indicating growing reach into secondary towns.
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The digital lending market has seen rapid growth since regulation began. Outstanding loans rose from KSh 28.9 billion in 2023 to KSh 55 billion by the end of 2024, before climbing to KSh 109.8 billion in November 2025. By February 2026, the figure had reached KSh 133.5 billion, an increase of KSh 23.7 billion in just three months. Over the same period, the number of borrowers expanded from 6.6 million to 7.5 million.
Licensing activity has also gathered pace, with 32 approvals in 2023, 53 in 2024, and 110 in 2025 across multiple batches. The framework was introduced in response to widespread concerns over unregulated lenders accused of charging excessive interest, harassing borrowers and misusing personal data.
Further regulatory changes are in the pipeline. Draft rules published in 2025 propose extending Central Bank oversight to the broader non-bank lending space, requiring firms with capital above KSh 20 million to obtain licences, while smaller players would need to register.
