This archive report was first published on 4 December 2019.
According to a report published on December 4, 2019, men are dominating mobile loans, with over 65% of borrowers being male. The report highlights that men under 25 and between 31 and 40 years old are the most indebted, with the former likely still in college or early in their careers, struggling to make ends meet.
Men in these age groups often resort to digital lenders to finance their basic and sometimes flashy lifestyles, waiting for their next pay cheque or pocket money. This has led to a vicious debt cycle, with many men struggling to pay back their loans.
While women only take 35% of mobile loans, they receive smaller loan amounts on average, with Sh5,472 compared to men's Sh6,086. The report also shows that borrowers between 31 and 50 years make up half of mobile loan borrowers, while those under 30 years make up 40%.
“Men were the main mobile loan borrowers and on average received higher loan amounts,” said Kamau Kunyiha, chief executive at CreditInfo, credit reference bureau. “While the market is heavily dominated by men, we can see today improvement in mobile lending. Central Bank has been reporting that digital financial services – which do not require traditional forms of security – are helping to narrow the gender gap in financial inclusion.”
