digital loans Stories
Despite their current challenges, most respondents said they do not intend to default permanently, expressing fear of being blacklisted by the Credit...
In a statement on Thursday, CBK said the approvals are part of an ongoing review of over 700 applications it has received since March 2022.
The report highlights that most borrowers seek these loans for survival rather than investment.
Slightly over one-third of Kenyans have increased their borrowing, a trend that aligns with rising living costs and delays in income.
The report attributes the shortfall to the shift from manual to digital loan applications, which disrupted the usual loan processing cycle.
Despite the widespread uptake of the Hustler Fund, loan repayment rates have not kept pace, prompting the government to revise the terms of repayment.
The suspects allegedly used an extensive network of SIM cards to secure loans that were never repaid, impacting tens of thousands of mobile accounts.
The move brings to 85 the total number of licensed digital credit providers in the country.
