CBK boss concerned over Kenyans appetite for mobile loans

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83 per cent of Kenyan adults now have access to financial services compared to 75 per cent in 2016.

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This is according to the latest Financial Access Household Survey that attributes the increase in financial access to digital finance driven by mobile banking services.

Digital finance continues to play a major role in the deepening of financial inclusion in the country and has led to improved individual financial health.

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Central Bank of Kenya Governor Patrick Njoroge is however concerned about the debt stress that Kenyans were putting themselves into due to an increasing appetite for easily accessible mobile loans through digital apps.

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The Financial Access Household Survey further indicates that over 70 per cent of Kenyans are saving with more metropolitan cities like Nairobi and Mombasa reaching full inclusion at 96 and 94 per cent respectively as Central Kenya saw a decline in financial inclusion by 2 per cent.

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According to the report, despite the deepening of financial inclusion, non-financial solutions still play a role in meeting day to day goals.

A similar report released last year showed similar statistics with 16 per cent of Kenyans borrowing from multiple mobile loan lenders between the third quarter of 2017 and the first quarter of 2018.

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The Market Overview of Mobile Loans in Kenya report by Credit Info showed that 74.5 per cent of the borrowers had between 2-6 mobile loans at any given time.

Men of age 41-50 borrowed most, say the report. Only 34.5 per cent of loans were issued to women, with 31-40 age group leading the pack.

 

 

 

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