Majority of Kenyans channeled money borrowed in the first half of this year to finance education, restock existing business and day-to-day living needs, digital lender Tala found in its H1 customer barometer survey.
- Borrowing habits remained largely the same as the last half of 2023 with only 20 per cent reporting to have borrowed more this year, with the average borrowed amount being between Ksh 10,000 and 20,000.
- 51 per cent of respondents borrowed from digital credit providers to bridge income gaps, 31 per cent started side hustles, 20 per cent per cent started their own businesses and 7 per cent borrowed from banks to cover their cash shortfalls.
- The lender surveyed 2,637 correspondents across Tala’s key markets in Kenya, Mexico, the Philippines and India between May to June 2024.
“Customers still feel the pinch of inflation, but it has been less acute in the last 6 months. Basic goods and services still represent a cost pain point for customers. Price increases feel overall less drastic, but remain most noticeable in food prices, consistent with 6 months ago,” the digital lender notes in the survey report. Despite relief at a high level, 80 per cent of Kenyans think food and groceries costs have increased in the last six months.
“Looking at consumer credit trends defining the first half of this year, matters of economic equity come into sharp focus as quick access to funds can mean the difference between financial stability and hardship for many households,” Annstella Mumbi, General Manager, Tala said.
Seventy percent (70 per cent) of digital credit consumers feel confident in their ability to repay their loans.
