Kenya’s digital lending market nearly doubled in 2025, with gross outstanding loans issued by licensed Digital Credit Providers (DCPs) rising to KSh110.1 billion, highlighting the growing reliance on mobile platforms for quick access to credit.
According to the Central Bank of Kenya’s 2025 Bank Supervision Annual Report, outstanding digital credit increased by 99.6 per cent, from KSh55.2 billion in December 2024 to KSh110.1 billion in December 2025.
The surge coincided with a sharp expansion in the number of regulated digital lenders. The number of licensed Digital Credit Providers increased from 85 in December 2024 to 195 by December 2025, with CBK licensing 110 new providers during the year.
The regulator attributed the expansion partly to changing customer preferences and increased demand for convenient, technology-driven access to credit through mobile applications and USSD platforms.
The growth was also reflected in the number of digital loan accounts. CBK reported that the average number of loans increased by 71 per cent, from about 3.9 million in December 2024 to 6.74 million in December 2025. Despite the sharp increase in the number and value of loans, the average loan size remained largely unchanged.
Digital lenders in Kenya offer a range of products, including short-term personal and emergency loans, business financing, agricultural credit, education loans, development loans and asset financing. The expansion has made digital credit an increasingly important part of the country’s broader financial services market.
The growth, however, has also increased the need for stronger consumer protection and responsible lending practices. CBK said its supervision of Digital Credit Providers has focused on areas including pricing transparency, responsible lending, data governance, consumer protection and market stability.
The rapid expansion of digital credit also comes as financial institutions face growing cybersecurity and technology risks. CBK said emerging risks linked to artificial intelligence, cloud computing, application programming interfaces, mobile money fraud and data protection are among the issues being considered as it updates its cybersecurity guidance for the banking sector.
For borrowers, the expansion means more options for accessing credit without visiting a bank branch. At the same time, the growing value of digital loans places greater importance on understanding the cost of borrowing, repayment terms and the consequences of default before taking credit.
The KSh110.1 billion outstanding balance therefore represents more than the growth of a single lending product. It reflects the rapid shift of Kenya’s credit market towards mobile and digital channels, with regulators and lenders facing the challenge of balancing easier access to finance with responsible borrowing and consumer protection.
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