How credit is driving quiet revolution in borrowing trends
Business
By
Brian Ngugi
| Aug 09, 2025
A new report offers an analytical look into the borrowing habits of Kenyans, revealing that digital credit is not just a financial tool but a catalyst for improved quality of life, business growth, and reduced financial stress, particularly among women.
According to a report by global impact measurement company 60 Decibels, commissioned by digital lender Tala, a striking nine out of 10 Kenyans reported an improvement in their quality of life, and 89 per cent feel more in control of their finances after taking a digital loan.
The report, based on direct feedback from Tala customers, highlights how digital credit is reaching previously underserved populations. It found that a quarter of borrowers were accessing a digital loan for the first time, with women being a key demographic in this group (33 per cent).
One female borrower, aged 30, was quoted saying, "The loan helped me expand my business and farming activities, which increased my income significantly. I was able to improve my life and support my family better."
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While the majority of loans were used for non-business purposes such as emergencies and education, the report found that 53 per cent of borrowers used their loans for business, with 90 per cent of those entrepreneurs reporting an improved business outlook. This was often reflected in better profits, increased sales, and business expansion.
A key finding was the profound impact on financial well-being. Nearly 80 per cent of borrowers reported improved financial management skills, and 88 per cent said they worry less about their finances. For women, the impact was even more pronounced, with 80% reporting an improvement in financial decision-making compared to a lower percentage for men.
The report also sheds light on the personal and household benefits beyond business. The loans contributed to increased household spending on education (75 per cent), improved ability to cover household expenses (84 per cent), and a boost in quality meals (69 per cent). On a personal level, 85 per cent of borrowers reported improved self-confidence.
Despite the positive outcomes, the report pointed to areas for improvement, noting that some borrowers expressed a desire for lower interest rates and more flexible repayment options. However, with a Net Promoter Score (NPS) of 52, Tala's performance places it within the top 40 per cent of the 60 Decibels Financial Inclusion benchmark for Africa.
The analysis concludes that while challenges remain, digital credit is playing a pivotal role in Kenya's financial landscape, empowering consumers to navigate a "crunching economy" and build a more resilient financial future.