Report: Kenyans borrow Ksh500 million daily from digital lenders
Kenyans are borrowing Sh500 million daily from digital lenders such as Tala and M-Kopa, among others, a new report shows, highlighting the crucial role online lenders play in the country.
With over 8 million Kenyans, or about 16 percent of the population, actively borrowing each month, this translates to Sh15 billion borrowed monthly, as per the latest Digital Financial Services Association of Kenya (DFSAK) report.
“The digital lending industry has become crucial for growth—attracting foreign investment, creating jobs, taking risks, and lifting millions out of poverty,” said Kevin Mutiso, DFSAK Chairman.
“We remain committed to empowering and protecting this vital sector for the benefit of all Kenyans.”
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The report also highlights how digital lenders are boosting financial inclusion, financing an average of 100,000 smartphones monthly, increasing internet access, and digital participation.
DFSAK welcomed the Business Laws (Amendment) Act 2024, which took effect in January, placing digital credit providers under Central Bank of Kenya regulation, which has brought much-needed clarity to the industry while strengthening consumer protection.
The association has already slashed consumer complaints from 4,000 a month to just a handful through the adoption of a stricter code of conduct. It is also working closely with the Office of the Data Protection Commissioner to establish further safeguards.
DFSAK moving forward will focus on tax reforms, particularly around bad debt allowances, to enhance industry sustainability.
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It has announced the addition of 4-G Capital and M-Kopa to its board, expanding its membership to seven. Other board representatives include Aspira, Kuwazo, Oye Platform Solutions, Tala, and Zenka.
Kenya remains at the forefront of Africa’s digital lending revolution, driven by high mobile penetration and a growing demand for accessible financial solutions.
