Early this week, the Central Bank of Kenya (CBK) announced that all unregulated mobile loan apps had been barred from being third party credit information providers to Credit Reference Bureaus (CRBs).
In 2019 study by the government, Financial Sector Deepening (FSD) and the Bill and Melinda Gates Foundation found that over hundred mobile lending apps were operating with virtually no regulatory controls.
On the other hand, only a handful of mobile loan apps were regulated, and included those under banks and other financial institutions such as M-Shwari, KCB-M-Pesa, Absa’s Timiza and Equity’s Eazzy Loan.
Despite having formed the Digital Lenders Association (DLAK), most of the apps fell for the CBK’s ax, and they might be forced to suspend their services since CRBs acted as their first line of defence against defaulters.
The 2019 study found that the total estimated value of digital loans disbursed to borrowers in 2018 was Ksh116.8 billion – or Ksh37,464 per digital borrower per year on average.
Read: Kenyans Who Have Defaulted Loans Less Than Sh1,000 To Be Delisted From CRBs – CBK
Digital loans represent just under 9 percent of the total observed market for loans by value and are the third largest source of credit by value after non-digital commercial bank loans and loans from SACCOs/MFIs.
As of September 2018, there were 110 mobile loan apps on the two main app stores from 74 unique developers. 65 of these were pulled down as of April 2019, while 47 new ones were developed by 43 unique developers.
This brought down the number to 92 as of April 2019 in the app stores, but the number could be higher owing to new developments.
Below is a non-exhaustive list of the mobile-based lenders:-
- Branch
- Zenka
- Tala
- Opesa
- Okash
- Okolea
- LionCash
- i-Save Mobile
- Lendi mkopo
- Okoa Cash Loans
- Fuliza Branch
- Investor
- MB-Kash
- iPesa
- Kopa Jirani
- FlashPesa
- Zash Loan
- Kashway
- Kava Personal Loans
- Kua
- Palm Loans Kenya
- Afrika loans
- Mshiko Chap
- Kenya Quick Loan Shop
- Senti
- Hikash
- MKash Bee
- PesaFlash
- Peso Loans
- Carbon
- Hela Pesa
- Eazzy Loans
- Fululiza Senti
- Stawika
- Tajiri
- Loanika
- Saida
- Kuwazo
- Fair Money
- Lendy LOANS
- Umba (Formerly Mkopo Kaka)
- UbaPesa
- Okoa 0% Interest Loans
- Kash Pesa Loans
- Fair Branch: Instantly and Accuracy
- Top Loan Lenders
- HiCash Quick and Easy Loans to MPESA
- Loans Chap Chap
- Izwa Loans
- Fintech Loans
- Imarika Credit
- PesaPata
- Okolea Quick Loans
- M-KOPAY
- Okoa Pesa pap
- Kenya Quick Loans Market
- Instant Cash- Reliable Money
- Pezesha
- mKopa
- tumaPesa
- Duta
- Saida
- Aspira
- Phedha Loans
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