While the government has proactively instituted a broad range of measures, it is important to highlight a few recent developments: the decision to revoke the right of digital lenders to report to the credit reference bureaus (CRBs), and the subsequent offering of what may become a constructive path forward in collaboration with the Central Bank of Kenya (CBK) in order to ensure that all Kenyans continue to have access to fair and needed digital lending services.
Building on mobile, machine learning and automated technologies, a number of digital lenders have stepped in to solve this critical public policy, social, and economic challenge by helping those who lack traditional credentials to access capital.
While there are valid concerns with aspects of the digital lending industry and some of its actors, the answer should not be to cut off access to credit when people need it most.
Other responses from the survey stand out in highlighting the importance of digital lending in promoting financial inclusion and economic growth in Kenya.
Nearly half of the sampled respondents mentioned that they would not have other credit options if not for the mobile loan; 84 per cent of small business borrowers stated that the loan enabled at least some growth in their business and 88 percent would consider taking another loan from a digital lender.
