A new report by the Digital Financial Services Association of Kenya (DFSAK) has revealed that Kenyans are borrowing Sh500 million every day, amounting to Sh15 billion monthly.
The report highlights that over eight million Kenyans, representing about 16 percent of the population, actively take digital loans each month.
DFSAK chairman Kevin Mutiso attributes the high borrowing rates to the widespread use of smartphones, which has made digital loans more accessible.
He noted that the digital lending industry did not exist in 2010, but in 2025, members of DFSAK, formerly known as the Digital Lenders Association of Kenya, are now disbursing billions in loans each month.
Mutiso further highlighted the significant role of digital lenders in financing key sectors of the economy. He pointed out that the rapid growth of the boda boda industry was almost entirely funded by non-deposit-taking credit providers (NDTCPs).
In addition, the industry has been instrumental in smartphone financing, with an average of 100,000 smartphones being financed each month over the past year.
“These two products—boda financing and smartphone financing—have had direct positive effects on the economy. Studies show that access to the internet increases earning potential, while boda boda riders have become part of the lower middle class with disposable incomes of around Ksh1,000 per day. Currently, there are over two million boda riders in the country,” Mutiso said.
The report also revealed that most loans are being used for essential business expenses and personal needs, with school fees being a major priority for borrowers.
The rising cost of living remains the biggest financial challenge for many Kenyans, with expenses outpacing income.
This has led to financial struggles such as income delays, lack of capital, increased debt burdens, job losses, and business closures in 2024.
Consumers are now becoming more selective about which lenders they borrow from, focusing on factors such as loan collection tactics, interest rates, repayment periods, and processing times.
Many borrowers are avoiding lenders with aggressive recovery methods, opting instead for those offering more flexible repayment terms.
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