A Digital Credit Provider (DCP) is an entity that provides credit through digital channels — mobile applications, online platforms, or USSD-based lending services. Following widespread concerns about predatory lending and consumer protection failures by unregulated mobile lenders, the CBK gained regulatory authority over DCPs through the Business Laws (Amendment) Act, 2019. The CBK (Digital Credit Providers) Regulations, 2022 formalised this framework. The Business Laws (Amendment) Act, 2024 subsequently expanded this framework further into non-deposit-taking credit provision generally.
Current Fees (Under DCP Regulations, 2022)
| Fee Item | Amount (KES) |
|---|---|
| Application fee (non-refundable) | 5,000 |
| Annual licence fee | As specified in CBK DCP schedule |
Proposed Fees (Under Draft NDTCP Regulations, 2025)
| Fee Item | Amount (KES) |
|---|---|
| Application fee (licensing or registration) | 100,000 |
| Annual fee — Licensed entity | 500,000 |
| Annual fee — Registered entity | 250,000 |
The draft 2025 regulations propose substantial fee increases to reflect CBK’s expanded supervisory mandate over the now much larger digital lending sector.
Key Application Requirements
| Requirement | Details |
|---|---|
| Company incorporation | Private limited company registered with BRS |
| CBK name pre-approval | Required before BRS registration |
| Form CBK DCP 1 | Online licence application form |
| Fit and proper forms (CBK DCP 2 & 3) | For directors, CEO, senior officers, and significant shareholders |
| Business plan | Including delivery channels, pricing model, and credit policy |
| AML/CFT policy | Required |
| Data protection policy | Must comply with the Data Protection Act, 2019 |
| IT systems documentation | Required; CBK may conduct data submission testing |
| Credit reference bureau report | For each significant shareholder, director, CEO, and senior officer |
Regulated by the Central Bank of Kenya (CBK) under the CBK Act, Cap. 491, and the CBK (Digital Credit Providers) Regulations, 2022.