How to Check If a Loan App Is Licensed by CBK Before You Borrow
By Kelvin Kibet | October 1, 2026
With hundreds of digital lenders operating in Kenya, checking whether a loan app is actually licensed should be one of the first steps before sharing your ID, phone data or financial information.
Step 1: Find the Company’s Legal Name
The name shown on an app icon may be different from the legal company name. Check the app’s website, terms and conditions or privacy policy for the registered business name.
Step 2: Open CBK’s DCP Directory
CBK maintains an official directory of licensed Digital Credit Providers. Search the legal company name rather than relying only on the product or app brand.
Step 3: Verify Before Sharing Data
If you cannot match the lender to the official directory, do not assume it is licensed because it appears in an app store or advertises on social media.
A Licence Does Not Mean the Loan Is Right for You
CBK licensing means the provider is under regulatory oversight. It does not guarantee that a particular loan is cheap or suitable. Always check the total repayment amount, fees, penalties and repayment period.
Red Flags to Watch
- Requests for upfront payment before disbursement.
- No clear legal company name.
- Pressure to share PINs or one-time codes.
- Unclear fees or repayment terms.
- A company that cannot be found in the CBK directory.
Check the Cost, Not Just the Loan Amount
Before accepting a digital loan, calculate the total amount you will repay. Compare the amount received with all fees, interest, penalties and the repayment period. A small short-term loan can become expensive when several charges are combined.
Read the Data and Privacy Terms
A lender may request access to personal information to assess an application or manage an account. Review the privacy terms and permissions before accepting them. A CBK licence does not mean a borrower should ignore how personal data will be collected and used.
What If the App Is Not in the Directory?
If you cannot find the legal company name in CBK’s current directory, pause the application and verify further. The safest approach is not to upload identification documents, contacts or financial information until you know which regulated entity is behind the service.
Borrow Only With a Repayment Plan
Licensing is a regulatory check, not a recommendation to borrow. Before taking the loan, identify the income source that will repay it and consider what happens if that income arrives late. Repeated borrowing to repay earlier digital loans can quickly create a debt cycle.
