Tell me if you’ve heard this one before. Somewhere in Africa, some savvy entrepreneurs come up with a potentially disruptive solution to a longstanding infrastructural challenge. They found their own fintech, win an innovation prize or two, and manage to raise enough venture capital to grow into a viable company. However,
What is a non-deposit taking (credit only) microfinance? A non-deposit taking institution, also known as a credit only entity is an institution that does not take any form of deposit or cash collateral from any person. This type of microfinance institution is not provided for in the Microfinance Act, Kenya
In our present dire economy, the need and demand for money has quadrupled immensely. For a chance at survival, people in general invest frantic and unrelenting effort to acquire money, necessitating the rise of the art of lending money to meet these insatiable needs and demand for money. Financial institutions
The uptake of digital lending has been on the rise across Kenya, boosted by growing smartphone adoption and the availability of mobile money transfer systems like M-Pesa. With quick application turnaround, digital credit has helped borrowers pay for basic necessities like food and rent and access working capital for their
The Lord Mayor of the City of London Peter Estlin, announced £10 million of UK Aid support towards the Catalyst Fund during a visit to Nairobi. His visit comes ahead of the first UK-Africa Investment Summit next year, which will bring together businesses, governments and international institutions to encourage investment in a
The focus on the potential and real risks of digital credit, while commendable, runs the risk of taking our collective eye off the wider credit market, which has a much more significant impact on Kenya’s economy. Recently there was a huge fuss about forest fires burning in the Amazon Jungle.
Over the past 10 years mobile-based lending has grown in Kenya. Some estimates put the number of mobile lending platforms at 49. The industry is largely unregulated but includes major financial players. Banks such as Kenya Commercial Bank, Commercial Bank of Africa, Equity Bank and Coop Bank offer instant mobile loans. These lending services have