How digital lending illiteracy among Kenyans is foiling their financial stability

CBK granted powers to regulate digital lenders in Kenya

In April 2013 when President Uhuru Kenyatta was sworn in, Kenya’s total public debt was just Ksh.1.8 trillion. If the money was shared among Kenyans at that time, each citizen would owe about Ksh.40,000.

Seven years down the line, the country’s debt has grown by six folds to Ksh7.7 trillion. With the current population estimates, every Kenyan owes the government more than Ksh.140,000.

But even though the National Treasury has been on a borrowing spree, so have Kenyans.

Characterized by easy access, instant availability of loans, affordable low interests, convenience and easy to use apps, the digital lending market is fast rising.

However, unknown to the majority of Kenyans, the advantages of the digital lending platforms could be leading them into a debt trap that could spell doom for their future financial stability.

Metropol Corporation’s General Chief Data Officer Edna Mulwa says borrowers often make mistakes while taking loans leaving them vulnerable. 

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