NextBillion - An Initiative of the William Davidson Institute at the University of Michigan

Monday, April 9, 2018

By Frankline Sunday

Mobile loans have become the largest source of credit for Kenyans besides family and friends, signalling the growing allure of financial technology (fintech) services in the country.

According to data from a new study on consumer trends by marketing research firm, Consumer Insight, four out of every 10 Kenyans polled rely on mobile loans for credit. This is against one out of 10 Kenyans who prefer bank loans.

“Mobile loans are steadily upsetting soft credit and are now the second most preferred avenue at 38 per cent in sharp contrast to 10 per cent for bank loans,” said Ruth Ruigu, a research director at Consumer Insight during the study’s release in Nairobi on Thursday.

Photo courtesy of Neil Palmer.