- Access to credit has taken a huge boost in Kenya with the introduction of mobile loans. All you need to have is a mobile phone that is registered with a service provider, be over 18years old and be creditworthy.
Data from the central bank of Kenya show that the number of Kenyans borrowing mobile loans has grown from lows of 200,000 in 2016 to as many as 3.8 million at the end of 2021. This shows how much mobile loans have become and the critical roles they play in the lives of ordinary Kenyans.
Kenyans have borrowed more than Ksh50.6 billion by the end of 2021.
The increase in the popularity of mobile loans has however come at a cost with the interest rates charged being as high as 520% per annum. This has led to high default rates. Many mobile loan providers were listing their clients with CRBs after default
What Are The Statistics On Mobile Loans In Kenya?
Since the advent of covid-19, the situation has gotten worse with the majority of Kenyans relying on mobile loans to get by. According to a survey by The Africa report:
- The majority of Kenyans (82.4%) are willing to continue borrowing digital loans to invest in businesses including stocks;
- 62% of these borrowers go-to digital lenders as their first option, then to family and friends;
- Digital loans are helping many businesses and households to settle their bills on time.
- The study also reportedly found that tough economic situations were the main reason why most Kenyans would miss their loan repayment deadline and that with a credit of between KSh10,000 – KSh100,000, investing in a business is a top priority, while education and food come second and third, respectively.
This study was done with over 1,000 digital lending clients between October 2021 and November 2021.
The proliferation of lenders has, however, saddled borrowers with high-interest rates that rise to 520 percent per year, leading to mounting defaults and an ever-growing number of defaulters. As of June 2021, the number of Kenyans listed negatively at the CRBs was 14 million. This led to the government barring the listing of loans defaulters with loans less than Ksh5 million.
Who Are The Mobile Loan Providers In Kenya?
When it comes to mobile loan providers, we can divide the players into three broad categories.
1. Telecommunication Providers
Here Safaricom is leading the fray with the following loan products:
- Fuliza Offered in conjunction with NCBA bank
- M-shwari offered in conjunction with NCBA bank
- KCB M-pesa offered in conjunction with KCB bank
2. Bank Mobile Loans
Here we have the ordinary banks offering mobile loans to their users. The banks have gone ahead to enable one to open a bank account using a mobile phone and access the loans. They are as follow:
- Timiza loan app by ABSA Bank
- PrimeKopa app by Prime bank
- PesaPap app by Family Bank
- NCBA Loop app by NCBA bank
- HF Whizz by Housing Finance bank
- Eazzy App by Equity Bank
- KCB Vooma Loan by KCB Bank
- MCo-Op Cash by Co-operative Bank
- M-FANISI by Maisha Microfinance Bank
- MyConso App from Consolidated Bank of Kenya
- Musoni Mobile by Musoni Microfinance
3. Loan Apps Providers
Loan apps are more common even than bank mobile loans. This is because many of the apps have less stringent application and vetting procedures. The downside is that majority of these loan apps have exorbitant interest rates that make it sometimes impossible to repay the loans.
Most of these apps have been barred by the central bank of Kenya from listing defaulters with CRBs. As of 2022, there were over 100 loan apps in Kenya. Some of them include but are not limited to the following:
- Zenka Loan App
- TalaLoan App
- OKash Loan App
- iPesa Loan App
- Okolea Loan App
- FlashPesa Loan App
- OPesa Loan App
- CashNow Loan App
- Kashway Loan App
- CreditHela Loan App
- Creditmoja Loan App
- Meta Loan App
- Branch Loan App
- LionCash Loan App
- Zash Loan App
- Timiza Loan App
- PesaZone Loan App
- FairKash Loan App
- HikashLoan App
- Patron Loan App
- SentiLoan App
- Berry Loan App
- BayesLoan App
- KashPlus Loan App
- MoKash Loan App
- Apesa Loan App
- LendPlus Loan App
- FaKash Loan App
- Pocket Cash Loan App
- AfrikaLoan Loan App
- Seven Kash Loan App
- KesMallLoan App
- CreditKes Loan App
- MyKes Loan App
- LoanPesa Loan App
- KesLoan Loan App
- Pesa Loan Loan App
- AsapKash Loan App
- Saida Loan App
- DirectCash Loan App
- FairMoney Loan App
- TiFi Slice Loan App
- Mkopo Loan to Mpesa Kenya
- Stawika Loan App
- Sky Pesa Loan App
- YeahKash Loan App
- Lemon Kash Loan App
- MB-Kash Loan App
- Fuliza Branch Loan App
- M-KASH Loan App
- L-Pesa Loan App
- Izwa Loans Loan App
- True Pesa Reliable loan App
- Kopa Kash Loan App
- UbaPesa Loan App
- Kuwazo Loan App
- iUpesi Kash Loan App
- Helacash Loan App
- EasyKash Loan App
- HELA PESA Loan App
- CashSea Loan App
- Bawa Credit Loan App
- Air Credit Loan Ap
- Kasi Loan Loan App
- Okoa cash loan App
- Kopa Loan App
- Meta Loan App
- Instarcash loan app
- Mkopo Loan App
- L Cash Loan App
- Kava Loan App
- Kinvest Loan App
- Haraka Loan App
- Utunzi loan App
- Sortika Loan App
- Berry Loan App
- Leja App
- Okoa Pesa pap Loan App
- Ustawi Loan App
- Zuri Loan APP
- Haki Money Loan App
- Haki Loan App
- Hustler Loans Loan App
- Shika loan App
- CashNow Loan App
- Fairkash Loan App
- Quick Instant Loan App
- pesa now loan app
- Afrecash loan app
- Inuka Loan App
- Inua Funds Loan App
- mKopa Loan App
- Mobile Loans Kenya App
- Aella Loan App
- Me-Pesa Loan App
- PesaKit Loan App
- Haraka Loan App
- Kash Chapaa Loan App
- Mpaso Loan App
- Jistawi Loan App
- CEMES Loan App
- IIFL Loan App
- Pngme Loan App
- Cash-flex Loans App
- CashBerry Loan App
- Kopesha Loan App
- Azima Loan App
- DevPesa Loan App
- Credit Loans Loan App
- Xash Loan App
- Little Pesa Loan App
- PesaPata Loan App
- Ooh Kash Loan App
- Ezesha Loan App
- Flash LoanLoan App
- Mwananchi Credit Loan App
- Pronto Loan App
- CashplusLoan App
- WezeshaLoan App
- Take Loans-Get Cash Loans App
- M-KOPA Loan App
- MOMBO Loan App
- Uwezo Pesa Mtaani Loan App
- Palm Mpesa Loans App
- Blocka Cash Loan App
- Ganji Loan App
- KopeshaCash Loan App
- Kilele Loan App
- Maisha Poa Loan App
- Tala Hela Loan App
- HaziniLoan App
- O-Kano Loan App
- Ahili Loan App
- Jawabu Biashara Loan App
- Eazy Loans Loan App
- Uni-cash Loan App
- Swift Loans Loan App
- Nawiri Loan App
- Mkopo Kenya Loan App
- Loans and credit Loan App
- Mobiloan Loan App
- Express Loan App
- Kopesha Loans App
- KashNow Loans App
- Boresha Loans App
- dolaxPlusLoans App
- M-Cosmo Loans App
- KashPlus Loans App
- LetsGo Loans App
- LionCash Loans App
- Platinum Loans App
- Eazy Cash Loans App
- Loan MapesaLoans App
- CashWay Loans App
- Pesa Pewa Loans App
- Ushindi Cash Loans App
- KNPay Loans App
- CashWay Loans Loans App
- Flash Loans App
- Fintech Loans App
- KK Loans App
- Zanke Loans App
- Kashway Loans App
- M-KopeshaLoans App
- Credit Kash Loans App
- wezaloans Loans App
- Palm Mobile Loans App
- M-Loans Loans App
- MaSenti Loans App
- T-Kash Loans App
- Jamii Loans App
- 24/7 Loans App
- Inpesa Pap App
- Inua Mkopo Loans App
- Loan Now Loans App
- Instahela Loan App
- Jiinue Loans App
- Mkopo Rahisi Loans App
- Kopacash Loans App
- MaishsCredit Loans App
- Kopesha Loans App
- Pesa Loan App
- Copia Loans App
- Flashy Pesa Loans App
- Kopo Kash loans App
- Tujijenge Instant Loans App
- Qwik Loans App
- Online loan for everyone without rejection advises App
- StarksPesa Loans App
- Ufanisi Credit Loans App
- RealPesa Loans App
- Loan Pap Loans App
- Life Cash Loans App
- MaPesa Loans App
- lendiplus Loans App
- Cash Cash Loans App
- fulusi Loans App
- Cashy Loans App
- Easy Cash Loans App
- QuickCash Loans App
- Faida Yetu Loans App
- Borrow Money Fast Loans App
- Quick Pesa Loans App
- Hela Pesa Loans App
- Swift Cash Loans App
- Fu LIZA ChapChap Loans App
- K Pesa Loans App
- Unifi-Fast Cash Loans App
- CashWay Loans App
- KashNow Loans App
- GoLoan Loans App
- Wezesha Loans App
- T-Kash Extra Loans App
- AEC Loan Loans App
- KopaKash Loans App
- Get Loan App
- SALT Crypto Loans App
- APFKash Loans App
- Lendtek Loans App
- Fanaka Credit Loans App
- Huduma Loans App
- Kopa Pesa Loans App
- Loan Kawala Loans App
- Prime Capital Loans App
- HiPesa Loans App
- Kopa Loans App
- Digital Credit My Friend Loans App
- Agiza Loans App
- M-cash Loans App
- Fathili Loans App
Final Thoughts
The many loan apps available in Kenya give a wide range of choices when you need cash to save the day. These loan apps may have better terms of payment than bank loans, but the catch is on the interest charged. This may be as high as 500% per annum which is very exploitative.
The apps do not expressly tell you this fact but will hide it in plain sight by stating the loan interest is only for the days the loan is outstanding. The days are usually short but when you calculate it on annual basis, it becomes apparent the amounts charged.
For example, an app that gives you a loan of Ksh1,000 to repay within 30 days and charges you a processing fee of Ksh40 and an interest of Ksh160 will claim to only charge 16%. What they do not tell you is that for 12 months the interest rate is 192%!
Bank mobile loans are cheaper as compared to app loans if you can qualify to get one.
