Wednesday
October 10
2018

Why Kenyan Borrowers Aren’t Scared of Defaulting on Mobile Loans

By Otiato Guguyu

Majority of Kenyans borrowing loans from mobile phones do not believe they have to pay back, a situation that is troubling banks venturing in this lucrative but risky segment.

According to the Central Bank of Kenya’s Financial Sector Stability Report, Non-Performing Loans (NPL) ratio for digital loans extended by banks is higher than that of the entire bank loan portfolio.

Latest data shows that for every Sh100 being borrowed today, Sh11.4 goes unrepaid, painting a picture of a nation whose citizens do not repay their debts.

Source: The Standard Digital (link opens in a new window)

Categories
Finance
Tags
digital finance, financial services, fintech, microlending, mobile finance, mobile lending