Tale of broke Kenyans borrowing billions to buy food
National
By
Antony Gitonga
| Sep 19, 2025
Kenyans are borrowing over Sh13 billion every month from digital loan lenders with most of the cash going towards buying food in a bid to address the harsh economic times.
And as the financial crunch deepens, the Digital Credit Providers are literally smiling all the way to the bank as suffering Kenyans turn to them for quick financial solutions.
This has largely been driven by easy access to lending platforms digitally, especially through mobile devices, with the sector recording 3.32 million accounts from 0.6 million accounts in the last two years.
According to Kevin Mutiso, the chair of Digital Financial Services Association of Kenya, 5.5 million Kenyans have access to over Sh13 billion in loans from 40 registered agencies monthly.
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With most borrowers tapping loans largely for consumption, Mutiso said the sector had helped Kenyans fund their enterprises and startups.
Speaking during a stakeholders meeting in Naivasha, Mutiso said the sector had facilitated borrowers' access to 230,000 smartphones through loans as well as financed over 68 million motorbikes on Kenyan roads.
He, however, dismissed concerns over rising defaults, noting that the sector has adopted the use of Artificial intelligence and big data from credit bureaus to help identify risky borrowers.
Mutiso said currently 84 percent of Kenyans have access to financial services, adding that they were working with the Central Bank of Kenya on new regulations that seeks to address rising concerns and gaps, including rogue lenders.
"We have engaged CBK to review core capital from Sh20m to Sh50m in order to streamline the sector and weed out rogue lenders", said Mutiso.
On his part, Sam Omukoko, the founder and Group Managing Director of Metropol Credit Bureau said the sharing of credit information had turbocharged access to loans to millions of Kenyans.
Omukoko, however, noted that the rise in non-performing loans in the sector, which currently averages 20 percent had been caused by harsh economic conditions with Kenyans borrowing for consumption rather than for growth.
He said the bureau had so far registered over 27m accounts that had accessed credit, adding that there was a need for lenders to improve their products so as to meet their customers’ needs.
Ali Hussein, the chair of Fintech Alliance of Kenya, raised concerns over the data protection of borrowers, which had been exploited by rogue players in the sector.
Hussein, however said there was need to address the financial wellness of borrowers after reports of a high rate of indebtedness due to multiple loan facilities.
The Sacco Societies Regulatory Authority (SASRA) CEO David Sandaji, said so far over 120 saccos have rolled out digital products where Kenyans tap various loan facilities.
He however, flagged cyber security risks brought by sharing of consumer data, which urged agencies to have inbuilt mechanisms to mitigate such gaps.