This archive report was first published on 12 August 2019.
Published on August 12, 2019, Tala's campaign comes at a time when digital lending is gaining popularity in Kenya.
Since its entry into the Kenyan market in 2014, Tala has disbursed loans to over 2.5 million customers, but the value of these loans remains undisclosed.
However, the fintech has lent more than Sh72 billion across its markets, including Tanzania, the Philippines, India, and Mexico.
As part of its campaign, Tala is touring the country to engage with customers and encourage them to borrow and invest in revenue-generating ventures.
"As we engage with our customers, we encourage them to borrow and invest in revenue-generating ventures," said Tala East Africa General Manager Ivan Mbowa.
The Central Bank of Kenya has raised concerns about the digital lending segment, warning that these firms might be used to launder dirty money.
CBK Governor Patrick Njoroge recently stated, "These entities are not regulated by the financial regulator. It is a big problem for us. It’s not just a lacuna but a huge lacuna in law," in June.
The CBK has introduced strict regulations under the Banking Charter, which spells out rules for online lending firms to operate.
For instance, lenders such as Tala and Branch must text borrowers the terms of the loan before approving it.
