Digital credit has been instrumental in granting formal credit in ways that were not conceivable a decade ago. It has provided individuals with the tools to manage their day-to-day needs and working capital for small enterprises.
The focus on the potential and real risks of digital credit, while commendable, runs the risk of taking our collective eye off the wider credit market, which has a much more significant impact on Kenya’s economy.
In the past five years, digital loans have transformed the market for credit in Kenya. For millions of adults, the possibility of borrowing from their phones has opened the door to private, formal consumer credit for the first time.