NAIROBI, Kenya – Imagine swiping your phone and within minutes, cash lands in your mobile wallet.
That’s the reality for millions of Kenyans who are borrowing an astonishing Sh500 million daily, stacking up to Sh15 billion every month, according to a fresh report from the Digital Financial Services Association of Kenya (DFSAK).
Digital lending is no longer just a convenience; it’s an economic powerhouse reshaping financial habits across the country.
Kenya’s appetite for digital loans is growing at breakneck speed. DFSAK’s report highlights that over 8 million Kenyans—roughly 16pc of the population—are actively borrowing from digital lenders every month.
The sector has evolved into a vital economic pillar, attracting investors, fueling job creation, and providing financial lifelines to individuals and small businesses alike.
“The digital lending industry has become crucial for economic growth—attracting investment, creating jobs, and lifting millions out of poverty,” said DFSAK Chairman Kevin Mutiso.
But with rapid expansion comes growing pains. Just a few years ago, digital lenders faced mounting criticism over aggressive debt collection tactics and privacy breaches.
Now, the industry is making major strides in consumer protection, slashing customer complaints from 4,000 per month in 2019 to just a few dozen today.
Regulation and Consumer Protection: A Game-Changer
One of the biggest shake-ups in the industry came with the Business Laws (Amendment) Act 2024, which officially brought digital lenders under Central Bank of Kenya (CBK) oversight.
This move has strengthened consumer protection and given borrowers a more transparent and accountable lending environment.
DFSAK has embraced these changes, actively collaborating with the Office of the Data Protection Commissioner to ensure further safeguards are in place.
With stricter codes of conduct, the era of relentless debt collection calls and privacy concerns is fading, replaced by a more structured and regulated lending ecosystem.
Kenyans borrowing Ksh500M from digital lenders daily – report.Read the whole story here: tinyurl.com/39w4a65e
The Push for Tax Reforms: Securing the Industry’s Future
As digital lending cements its place in Kenya’s financial ecosystem, industry leaders are eyeing tax reforms to ensure sustainability.
A key focus? Bad debt allowances, which would provide much-needed relief for lenders grappling with defaults.
DFSAK argues that better tax policies will encourage responsible lending and ensure that the sector continues to thrive without burdening borrowers with excessive fees.
The conversation around digital credit is far from over, but one thing is clear: Kenya’s borrowing habits are shifting, and the digital lending industry is adapting to meet the demand.
With improved regulations, consumer protections, and a call for tax reforms, the industry is on a path toward responsible and sustainable growth.
