Kenyans borrowed mobile loans totaling to 112.2 billion shillings with majority of borrowers being males who borrowed an average of 6,000 shillings.
According to a mobile loan market research by Credit Info, mobile non-performing loans stood at 10. 7 percent with people below the age of 25 years being the highest defaulters.
Though many different companies have come up with digital lending apps the traditional banks still control 93 percent of the total mobile lending as the banks diversify their product portfolio to ward off competition from upcoming online lenders.
According to the credit reference bureau, 15 mobile lenders loaned out a total of 112.2 billion shillings with interest averaging 5-7 percent per month between November 2018 and April 2019 to 4.5 million individual borrowers. 65 percent of the borrowers were males aged between 31-40 years borrowing an average of 6,600 shillings.
The report showed that people below the age of 25 years were considered a credit risk by mobile lenders due to high unemployment rate in the country and were lent an average of 3,600 shillings twice less what people over 30 were given.
During the period under review non-performing loans stood at 10.7 percent with individual borrowers applied for loans 4.5 times on average while companies requested for loans 2.6 times on average.
The report called for more IT investments to support digital lending and ensure financial inclusion.