Kenya central bank expands digital finance licensing

In July 2026 Kenya’s Central Bank intensified its regulation of digital finance. On July 14 it approved 25 additional Digital Credit Providers, raising the total licensed digital lenders to 252. The regulator evaluated applications on business model soundness, consumer‑protection measures and the fitness of shareholders and senior management, aiming to broaden financial inclusion while curbing predatory lending.

A week later, on July 25, the Bank issued comprehensive licensing rules for virtual‑asset service providers (VASPs). The new framework sets minimum capital requirements for stablecoin issuers, wallet providers, exchanges and ICO facilitators, and mandates governance, AML, cybersecurity and consumer‑protection standards. By requiring licences for both domestic and foreign crypto firms, Kenya seeks to safeguard investors and provide regulatory certainty for its growing crypto market.

Together, these actions illustrate a coordinated effort by the Central Bank of Kenya to extend formal oversight across emerging digital‑financial services, from mobile‑based lending to virtual assets, to enhance consumer protection and support inclusive growth.