Revealed: Inside the borrowing trends in Kenya

Business
By Brian Ngugi | Aug 10, 2025
Woman holding a mobile phone with loan application approval. [Courtesy/GettyImages]

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).

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.

Financial management

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 per cent 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.

Share this story
Banks push green mortgages with extra cash for eco homes
Kenya’s mortgage market is transitioning into green finance, offering new options for buyers to finance energy-saving and climate-resilient homes.
Graduates urged to embrace AI as new technology takes root
Kenya National Innovation Agency (KeNIA) chief executive Tony Omwansa emphasised the power of innovation as a key driver of progress.
Revealed: Inside the borrowing trends in Kenya
The report, based on direct feedback from Tala customers, highlights how digital credit is reaching previously underserved populations.
Region's rising economic potential draws trade exhibitors to Nairobi
This expansion has fostered a burgeoning middle class, driving demand for high-quality goods and services.
Which way to resolve late funds disbursement to counties?
When it comes to timely disbursement of funds to county governments, accusations never cease to flare up
.
RECOMMENDED NEWS