This archive report was first published on 4 December 2019.
On December 4, 2019, a survey by Creditinfo CRB Kenya Ltd shed light on the mobile loan market in Kenya, revealing a stark disparity in access to credit among different age groups.
The survey, which analyzed credit reports on 4.5 million borrowers submitted by 13 lenders, found that borrowers aged 30-40 controlled 31% of the 19.1 million mobile loans disbursed between November 2018 and April 2019.
Younger borrowers, aged 25 and below, accounted for 21% of the loans, while those aged 26-30 and 41-50 commanded a market share of 19% each.
According to Creditinfo Chief Executive Kamau Kunyiha, younger people often score lower due to limited revenue streams and lower money velocity compared to their older counterparts.
Only 8% of the loans were disbursed to borrowers aged 51-60, while a mere 3% went to those aged 61 and above.
The analysis also revealed that mobile loan apps run by commercial banks accounted for 92.8% of the Sh112.2 billion advanced over the six months.
Mr. Kunyiha noted that the banking sector dominates the mobile lending space by a staggering 93%, while digital mobile apps account for the remaining 7%.
