Licensed digital lenders had KSh153.8 billion (Kenyan shillings, about US$1.18 billion) in loans outstanding in June 2026, twice the KSh76.8 billion (about US$0.59 billion) of June 2025. The Central Bank of Kenya (CBK) says in its annual Financial Sector Stability Report 2025 that this is more than all lending by microfinance banks, which are small deposit-taking lenders.
Digital lenders, known as digital credit providers, issue small phone-based loans that run for weeks. The central bank warns that the loans are too small to raise incomes and that unpaid debts are becoming entrenched.
Small phone loans have grown into a market worth about US$1.2 billion in Kenya, and the central bank says unpaid debts are hard to collect.
How Fast the Market Grew
The CBK’s stability report shows the outstanding loan book at KSh153.8 billion in June 2026, against KSh110.1 billion (about US$0.85 billion) in December 2025. That is growth of about 39.7% in six months.
The number of loan accounts rose from 6.74 million in December 2025 to 8.9 million in June 2026. That works out to about KSh17,300 (about US$133) outstanding per account, on our calculation.
What the Central Bank Says
File photo: the Nairobi skyline seen from Uhuru Park, a city park.The CBK says most loans are below KSh20,000, with terms from one week to two months. It says the short term makes them useful for emergencies and working capital for small firms.
The report also says the loans are too small to let households and businesses make investments that raise earnings. It adds that easy lending exposes providers to risky borrowers, and that recovery costs can exceed the loan, which entrenches delinquency.
Who Is Allowed to Lend
Under the Central Bank of Kenya (Amendment) Act, 2022, the CBK licenses and supervises digital lenders. The count of licensed providers reached 281 by September 2026, according to the report.
The CBK licensed 25 more providers in July 2026, which took the total to 252 at that point. It publishes a directory of licensed digital credit providers on its website.
What It Means for You
For investors in African financial technology, the doubling shows demand for instant credit, while the regulator’s warning shows the risk of bad debts. Visitors and residents in Kenya should borrow only from lenders on the CBK’s licensed list.
Related Kenya coverage includes Kenya’s debt to the World Bank, the global development lender, and a finding by the World Bank, the global development lender, on railway costs. More is on our Kenya page.
What Is Not Known
The section of the report on digital lenders gives no default rate for the segment. It also does not say how many borrowers hold loans from more than one lender.
We do not know when the CBK will publish its next update. Dollar values use about KSh129.8 per US dollar, a recent market rate, for all dates.
Frequently Asked Questions
How much do Kenyans owe digital lenders?
KSh153.8 billion (about US$1.18 billion) was outstanding in June 2026, according to the CBK. A year earlier it was KSh76.8 billion.
How many digital lenders are licensed in Kenya?
The CBK reports 281 licensed digital credit providers as of September 2026. Unlicensed lenders can be reported to the central bank.
How big are digital loans in Kenya?
Most are below KSh20,000 (about US$154). Terms run from one week to two months.
Sources: Central Bank of Kenya, Kenya Financial Sector Stability Report 2025, section 2.1.3 and Figure 24, https://www.centralbank.go.ke/reports/financial-sector-stability-reports/ ; Central Bank of Kenya, press release on licensing of digital credit providers (July 2026). Exchange rate about KSh129.8 per US dollar, 6 November 2026. This is news, not investment advice.
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