Mobile loans by digital lenders hit Sh500billion in 8 years
The Digital Lenders Association of Kenya now rebranded to Digital Financial Services Association of Kenya (DFSAK) have reported disbursing over Sh500billion in mobile loans to small businesses and households over the last eight years.
Effectively, the latest revelations by DFSAK shows an equivalent to a million mobile loan seekers every year have resulted to mobile loans as fears of impoverishment due to high cost of living and unemployment has worsened the situation.
“With a robust regulatory environment and increasing consumer interest, we expect the sector to keep deepening financial inclusion in the coming years.” DFSAK chairman Kevin Mutiso said during the Digital Finance Summit 2023 in Nairobi.
Mutiso said the rebrand is in a strategic bid to deepen financial inclusion by bringing together more players in the financial services ecosystem and be more responsive to the dynamic customer needs.
“We foresee demand for mobile credit rising as small local businesses turn to online marketing platforms and seeking growth funds beyond borders.” Mutiso added.
