Where Credit Is Due: Customer Experience of Digital Credit In Kenya

What are the reasons behind high default rates on digital credit?

Digital credit offers enormous promise to enhance provide a valued service to the mass market thus increasing financial inclusion, while also driving uptake and use of digital financial services (DFS). However, with 2.7 million people already blacklisted on the credit reference bureau in Kenya, concerns are growing about current standards of regulation, customer protection and product design.

In response, this brief study was conducted in Nairobi and Meru to examine the root causes of the alarming default rates on digital credit to propose recommendations for regulators/competition authorities, providers and other stakeholders. The research examined the process of applying for loans from different providers as well as conducting individual interviews with borrowers to understand their needs, aspirations, perceptions and behaviors.

About this Publication

By Mustafa, Z., Wachira, M., Bersudskaya, V., Nanjero, W. , Wright, G. A. N.