Kenya sees surge in unique borrowers over five years, loan value declines

The number of unique Kenyan borrowers has expanded dramatically during the last five years. In 2023, there were 3.9 million in addition to the 7.5 million individual borrowers in 2019.

These unusual borrowers included both individuals and businesses.

According to the most recent data on Kenya's credit industry environment by Financial Sector Deepening (FSD), the 11.4 million unique borrowers in 2023 represented a modest decrease from the 12.2 million recorded in 2022.

"This represents an average growth rate of 27 per cent over this period. Over the last five years, the number of corporation borrowers, or non-individual borrowers, increased by about 36 per cent. However, there was," the report said.

From 2019 to 2022, there was a slowdown in loan disbursement to businesses, which recovered in 2023. The research cites macroeconomic factors, the COVID-19 pandemic, and the 2022 General Election. On the other hand, the value of individual loans provided annually increased steadily before dipping by 21 per cent between 2022 and 2023.

According to the survey, from 2019 to 2023, there were an average of six million unique males and 4.3 females. According to the report, this number corresponds to the total amount of loans issued each year.

According to FSD, there were 62.2 million unique loans issued in 2023, up significantly from 37.8 million in 2019.

Despite this, the total value of loans disbursed each year has been declining, with Sh 2.067 billion issued in 2019 and Sh1.937 billion in 2023.

"Male borrowers accounted for 61.4 per cent of the total number of new loans issued between 2019 to 2023 which were almost double in value compared to the amount issued to female borrowers," the report explains.

The 2022 general election impacted the economy, resulting in a decrease in the average loan amount taken by enterprises from Sh 9 million in 2019-2021 to Sh 6 million in 2022.