This archive report was first published on 4 December 2019.
Men Outnumber Women in Mobile App Loans in Kenya ¶
According to a recent survey by Creditinfo, men in Kenya are more likely to borrow mobile app loans than women. The survey, which was conducted between November 2018 and November 2019, found that men take up 65% of mobile loans, with an average borrowing amount of KSh 6000.
On the other hand, women account for 35% of mobile loans, with an average borrowing amount of KSh 5000. The survey covered 15 lenders, who offer loans with a maximum limit of KSh 50,000 and a repayment period of 3 months.
Chief Executive Officer (CEO) at Creditinfo, Kamau Kunyiha, attributed the high default rate among young people to a lack of discipline. He noted that once a borrower defaults on a loan, they are likely to default on subsequent loans.
"It is a discipline issue because once they default, they default on the other," Kunyiha said.
The survey also found that 93% of mobile loans were provided by the banking sector, with lenders leveraging on digital credit to boost their earnings. Some of the top loaning apps include Safaricom's M-shwari and KCB-Mpesa.
Published on December 4, 2019
