A man holds his smartphone with different types of mobile loan lending services displayed on his screen in Nairobi, Kenya. A surge in digital lending has seen thousands of people swipe their way into debt via high-interest loans like the one taken by Kilonzo. But although the apps promise quick and discreet cash to the unbanked, failure to repay usually results in public humiliation. — AFP
NAIROBI: It only took Kenyan security guard Ambrose Kilonzo a few seconds and zero-collateral to secure a loan from a mobile app. But when he defaulted, lenders called his boss, putting his job at risk.
It is an ordeal experienced by many in Kenya, where a surge in digital lending has seen thousands of people swipe their way into debt via high-interest loans like the one taken by Kilonzo.
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A man holds his smartphone with different types of mobile loan lending services displayed on his screen in Nairobi, Kenya. A surge in digital lending has seen thousands of people swipe their way into debt via high-interest loans like the one taken by Kilonzo. But although the apps promise quick and discreet cash to the unbanked, failure to repay usually results in public humiliation. — AFP
With only 41% of the population having access to a bank account, according to 2019 data from the Central Bank of Kenya and the finance non-profit FSD Kenya, digital lending has boomed in the East African nation. — AFP
Kenya is home to over 100 apps including Silicon Valley-backed Tala, Chinese-owned Okash and Opesa that advance up to US$60mil (RM254.16mil) in loans per month. — AFP
Njoroge has already sounded the alarm about the credit binge, warning parliament in July about the risks to the overall economy. — AFP
Like Kamene, most users are often unaware they have given consent to app developers to access their contacts database, call and SMS logs, Facebook friends list, location and other information. — AFP
A man holds his smartphone with the display of Tala-a mobile loan lending service displayed on his screen in Nairobi, Kenya. — AFP
