Skip to main content

Digital Mobile Lenders in Kenya adopts New Strategy to Remain Afloat

Digital lenders in Kenya have devised a new strategy of doing business, after Central Bank of Kenya barred them from submitting credit reports to credit reverence bureaus (CRB).They have opted to offer their services to a few customers with good credit reputation.
Mobile lenders decided to cut down their services to avoid high risk. The Chairman of Digital Lenders Association of Kenya (DLAK) Kevin Mutiso stated: “We stopped lending in March through April and May but we had to make decisions so we wrote off all bad loans.”
Mutiso added that they were “only lending to the best customers who understand that the money they are borrowing have to be repaid. Most individuals initially were borrowing with no intention to pay back.”
Central Bank of Kenya (CBK) precluded mobile lenders from forwarding names of defaulters to CRB due to what it termed as ‘unregulated and predatory in their lending approach.” According to Business Insider Africa, around 90% of loan defaulters in Kenya are those who borrowed money from digital lenders.
The removal of digital lenders from accessing CRB exposed them to more risks resulting from bad debts, hence the decision to scale down their markets. Parliament is on process of passing a bill that will root out predatory lending.
Labels:

Comments

Post a Comment

Popular posts from this blog

Kenyans surprised over UDA's 'Voters Repair' remarks for President Ruto 2027 reelection

 Kenyans are reacting strongly to remarks by some UDA leaders that many interpret as hints at election manipulation ("ukarabati ya kura" / "voters repair") ahead of the 2027 presidential election. What Happened On or around May 23, 2026, NTV Kenya and other outlets aired footage from a UDA meeting at Kakamega Deputy Governor Ayub Savula's home.  Leaders including Savula and MP Charles Gimose reportedly used phrases like "tutafanya ukarabati ya kura" (we will repair/do maintenance on the votes).  Some comments referenced high victory margins in places like Tanzania under Samia Suluhu or Museveni-style wins. This has been widely seen as implying plans to "fix" or pad results in favor of President William Ruto's reelection, rather than a literal call for better voter registration or system maintenance. Public Reaction 1. Surprise and outrage: Many Kenyans on X and social media expressed shock, viewing it as arrogant or desperate signaling am...
Post a Comment
Read more

How to commercialize your prototype innovation in Kenya

Commercializing a prototype in Kenya involves transforming your innovation from a proof-of-concept stage into a marketable product or service that generates revenue. This process requires protecting your intellectual property (IP), validating market demand, securing funding, and selecting the right business model.  Kenya has a supportive ecosystem with government agencies, grants, and innovation hubs to help.  Below is a step-by-step guide based on established practices and resources. 1. Protect Your Intellectual Property (IP) Before commercialization, safeguard your innovation to prevent copying. In Kenya, IP protection is handled by the Kenya Industrial Property Institute (KIPI). Register your IP : File for patents, trademarks, copyrights, or industrial designs. Patents are crucial for inventions and provide a 20-year monopoly.  Start with a patent search to ensure novelty, then apply via KIPI's online portal. Costs range from KSh 3,000–50,000 depending on the type. Why...
Post a Comment
Read more

Important steps to be taken when buying Land in Kenya

  Land is a vital asset and acquiring it requires utmost caution to avoid finding yourself in a protracted, unending legal battle. As Kenya's economy bites, there has been increased cases of land fraud.  Land disputes have been so rampant, hence the need for advocacy of future land buyers to be cautious when undertaking land transfer processes. Factors to consider when purchasing land in Kenya 1. Do a land search at the ministry of lands. This enables you to confirm the real owner of the land and know whether it has any legal dispute, loan or unpaid tax. 2. Site visit: Make sure you see the land physically and confirm its boundaries. 3. Land verification: Verify the authenticity of the property at the land registry and confirm if it is freehold, leasehold or communal. 4. Sale agreement: Engage a lawyer and a surveyor for legally sound transaction. 5. Land transfer: Make sure the original titledeed is transferred from the name of the seller to your name. 6. Register your land w...
Post a Comment
Read more