Digital lending in Kenya is fast becoming a key lifeline.
65% of Kenyans do not have a bank account while 45% of borrowers on digital platforms lack a formal credit rating.
[VIDEO] 99.3% of Bank Accounts in Kenya have Less than Kshs. 1M, Says CBK Governor, Patrick Njoroge: https://t.co/UnizWm7VEP @CBKKenya @NjorogeP
— BitKE (@BitcoinKE) February 27, 2019
In addition, 87% of Kenyans struggle with access to credit having never had approved loans for ~$25.
Mobile based lending in Kenya has now become key to financial wellbeing for underserved borrowers. However, this introduces new risks such as over-indebtness due to lack of financial knowledge.
The research shows financial health improved significantly for underscored borrowers with no credit history who benefitted the most from mobile lending service as an entry point to formal financial systems.
A Different Perspective of Kenya
A survey shared with BitKE by Pesalink in February 2025 revealed that mobile banking apps are nearly as popular as mobile money wallets in Kenya among its users.
🇰🇪REPORT | Mobile Banking Apps Are Nearly as Popular as Mobile Money Wallets Among Our Users, Says Kenya’s PesaLink
The study reveals that 57% of Pesalink users rely on more than one bank for instant paymentshttps://t.co/NJTlTi4Dy5 @IPSL_Kenya @KenyaBankers pic.twitter.com/jJXG5SvUfo
— BitKE (@BitcoinKE) February 28, 2025
In contrast, Kenyans deposited a record $6.3 billion in SACCOs, local savings schemes, in 2023. SACCOs account for ~7% of the Kenyan GDP and are a popular means for regular people to grow their finances, turning to the hundreds of SACCOS as investment avenues. These organizations are so popular that plans are underway to set up a central liquidity facility to enable them to lend to each other, same as interbank lending.
About 175 Savings and Credit Co-operative Societies (SACCOs) in Kenya🇰🇪 to Get Own Inter-Lending Facility
* Deposit-taking total SACCO deposits rose 13.41% to KES 431.46 billion in 2020
* Gross loans increased 13.16% to KES 474.77 billionhttps://t.co/8GQz2ml6JP
— BitKE (@BitcoinKE) July 22, 2022
A 2022 report by FSD Kenya showed that cash still accounts for ~80% of daily transactions in Kenya.This data highlights the challenge of low financial health despite the impressive growth of Kenya’s financial inclusion rates.
Cash Still Accounts for 80% of Daily Transactions in Kenya🇰🇪, Says Latest 2022 FSD Report https://t.co/ABNyzhCkoo @FSDKe @FSDAfrica
— BitKE (@BitcoinKE) April 20, 2022
It is estimated that 84% of the Kenyan population has access to at least basic financial services thanks to the near-pervasiveness of mobile money, with financial inclusion rising from just 26.7% about ten years ago.
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