Updated 8 November 2026
A digital credit provider licence from the Central Bank of Kenya (CBK) is required before a company can lend through apps or other digital channels. CBK’s licensing procedure runs in three stages: approval of the company name, the licence application on Form CBK DCP 1 with fit and proper forms, then data-submission testing and payment of the licence fee. The application fee is KSh 5,000, non-refundable, and the licence fee is currently KSh 20,000. Only a company incorporated under the Companies Act can apply.
Checked on 8 November 2026 against CBK’s Procedures for licensing Digital Credit Providers (revised October 2024) and the CBK (Digital Credit Providers) Regulations, 2022. Licensing rules for non-deposit-taking lenders can change; check CBK’s website for any newer regulations before applying.
Contents: Who needs it · Fees · Stage 1 · Stage 2 · Stage 3 · Documents · FAQ
In this guide
- Who needs a digital credit provider licence
- Digital credit provider licence fees
- Stage 1: approval of the name
- Stage 2: the digital credit provider licence application
- Stage 3: data-submission testing and licensing
- Documents CBK expects
- How borrowers can check a digital credit provider licence
- Digital credit provider licence FAQ
Who needs a digital credit provider licence
The 2022 regulations require anyone who wants to carry out digital credit business in Kenya to apply to CBK for a licence. The applicant must be a company incorporated under the Companies Act, and its significant shareholders, directors, chief executive and senior officers must meet CBK’s fit and proper criteria. CBK publishes licensed lenders in the Kenya Gazette and on its website, which is how borrowers check an app; our list of CBK-licensed digital lenders covers the consumer side.
Digital credit provider licence fees
| Item | Amount | When paid |
|---|---|---|
| Application fee | KSh 5,000, non-refundable | With the original documents at Stage 2 |
| Licence fee | KSh 20,000 (CBK: “currently”) | When CBK notifies you, after data-submission testing |
| Payment method for application fee | Banker’s cheque to CBK, RTGS, or another mode CBK specifies | – |
CBK’s procedure says the annual licence fee is payable in full for the year in which the licence is first issued and is not prorated for periods under 12 months. So a licence granted late in the year still costs the full fee for that year.
Stage 1: approval of the name
New promoters start here; companies already incorporated go straight to Stage 2. CBK’s steps are:
- Read Part II of the DCP Regulations on licensing.
- Reserve at least three business names, in order of preference, with the Registrar of Companies.
- Submit the names to CBK through its name-approval portal with the reservation document, proposed shareholders’ names, addresses and IDs, a business summary (company profile, governance, business model and channels, target market, customer base and loan book, product and app names, shareholder backgrounds), the initial capital and evidence of its sources including 12-month bank statements, and a certified declaration of sources of funds by each individual shareholder.
- Obtain a letter of no objection from KIPI on use of the name.
- Incorporate a limited liability company under the approved name.
Corporate shareholders must be traced back to the ultimate beneficial owner.
Stage 2: the digital credit provider licence application
- Create a profile on CBK’s DCP application portal and verify your email.
- Complete Form CBK DCP 1 online, print and sign it.
- Complete fit and proper forms CBK DCP 2 and DCP 3 for directors, the chief executive, senior officers and significant shareholders.
- Upload the signed forms and supporting documents.
- Submit the originals to CBK with the KSh 5,000 application fee.
- CBK assesses the file for completeness and compliance.
Stage 3: data-submission testing and licensing
Once CBK is satisfied, the applicant must test its regulatory reporting (“data submission”) using APIs, with CBK guidance. When notified, it pays the licence fee. CBK issues the licence after all requirements and testing are met, and publishes the name in the Gazette and on its website. The 2022 regulations say CBK shall grant a licence within sixty days of a complete application if the applicant meets the requirements, and may attach conditions.
Documents CBK expects
Regulation 4 lists what must accompany the application, including:
- certified certificate of incorporation and Memorandum and Articles, plus those of any corporate significant shareholder;
- a description of the ICT system with independent assurance, and of delivery channels or platforms;
- products, terms and conditions, pricing model and parameters, and the credit policy;
- any agreement with a telecom or other channel provider;
- AML/CFT, data protection, consumer redress and corporate governance policies, and a code of ethics and market conduct;
- evidence of sources of funds;
- certificate of good conduct, tax compliance certificate and CRB report for each individual significant shareholder, director, chief executive and senior officer;
- a sworn declaration by every officer.
Collection practices matter too: our guide to what digital lenders are banned from doing summarises conduct rules applicants must build into their policies.
How borrowers can check a digital credit provider licence
For borrowers, the practical question is whether an app actually holds a digital credit provider licence. CBK publishes the list of licensed digital credit providers on its website and updates it as new approvals are made, so check the company name behind the app, not just the app’s brand, against that list. Our guide to CBK-licensed digital lenders explains how to read it. An app that cannot show a digital credit provider licence is operating outside the CBK framework, which removes the conduct rules that protect you, including the limits covered in what licensed lenders are banned from doing.
For applicants, the same list shows how CBK names approved entities, which helps when choosing a name for stage 1. It is also a reminder that a digital credit provider licence is issued to a company, so the entity on your app store listing, privacy policy and loan agreements should match the licensed name.
Digital credit provider licence FAQ
How much is a digital credit provider licence?
KSh 5,000 to apply, non-refundable, and a licence fee CBK says is currently KSh 20,000.
Who can apply for a digital credit provider licence?
A company incorporated under the Companies Act whose owners and officers pass CBK’s fit and proper test.
How long does CBK take?
The regulations say CBK shall grant a licence within 60 days of a complete application if requirements are met.
Does an existing company need name approval?
No. CBK says already-incorporated companies start at Stage 2.
Is the licence fee prorated?
No. CBK says the fee is paid in full for the first year regardless of when the licence is issued.
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