- The World Bank published the Global Findex 2025 report, emphasizing financial trends in Kenya during 2024.
- A report from the Bretton Woods institution indicated the proportion of Kenyans depending on mobile loans to make ends meet.
- The study examined the differences in mobile money loan usage between men and women, highlighting which gender takes on more loans.
A journalist from zaia news.co.ke, Japhet Ruto, brings more than eight years of expertise in covering financial, business, and technology topics, providing valuable perspectives on economic developments in Kenya and around the world.
With reduced bank lending, an increasing number of Kenyans are choosing to obtain loans through mobile money services offered by local companies.
As per the World Bank's Global Findex 2025 report, formal lending saw an increase in 2024 when compared to 2021, with most loans being obtained through mobile money accounts.
How many people in Kenya depend on mobile-based loans?
In this context, 32% of adults obtained loans from mobile money services, while 25% relied solely on this approach.
86% of all formal borrowers were individuals who obtained loans through mobile money services.
According to the report, which compared mobile money borrowing rates between genders, women in Kenya are less inclined than men to obtain loans through digital wallets, with only 16% doing so.
Besides mobile network operators, the Central Bank of Kenya (CBK) has authorized 51 digital loan providers to offer financial assistance.
Significantly, numerous Kenyans are also obtaining loans from friends and family members, while some are seeking financial support from informal groups such as clubs and chamas.
How do people in Kenya settle their bills?
The study also revealed that most agricultural payments are conducted via phone because of Kenya's large mobile money user population.
In Kenya, 71% of those who received agricultural payments got them through digital means. This was different in Uganda, where cash remained the primary method for agricultural transactions.
Kenyan residents also utilize mobile money accounts to settle bills for services such as waste collection, electricity, and water supply.
Meanwhile, 56% of retailers adopted digital payment methods in 2024, compared to 37% in 2021.
The World Bank identifies Kenya as one of the countries with the highest levels of online transactions. China, Brazil, Kazakhstan, and Mongolia are also included in this group.
The percentage of Kenyan adults who paid digital merchants at supermarkets increased in 2024 as well.
The World Bank mentioned that when applying for loans, it opens the chance for businesses without physical stores to present records of their digital payment inflows as proof of income.
What types of loans did Safaricom introduce?
In other updates, Safaricom's M-Pesa has broadened its range of merchant credit options to support small and medium businesses in Kenya in overcoming working capital challenges and managing cash flow issues.
The organization launched three loan options aimed at providing retailers utilizing Lipa Na M-Pesa or Pochi La Biashara terminals with rapid, adaptable funding for buying inventory, covering operational costs, and growing their businesses.
Taasi Pochi provides financial assistance of up to KSh 150,000 to merchants and enterprise operators who have been utilizing Pochi La Biashara for a minimum of six months.
Business account holders can carry out transactions worth up to KSh 400,000 due to the Fuliza Biashara overdraft service.
Businesses that consistently use a till can access as much as KSh 250,000 through the Taasi Till Loan, which is available without needing any security.