Lubao FM News 
Despite major regulations to tame digital lending in the country, 82.4 percent of Kenyans are still willing to continue borrowing digital loans to invest in businesses.
This is according to a latest report by The Digital Lenders Association of Kenya (DLAK).
The report dubbed the Credit Barometer, reveals that 62 percent of borrowers go to digital lenders as their first option before asking family and later friends.
The Survey shows that majority of Kenyans still prefer borrowing from digital lenders compared to banks despite the financial institutions having a lower interest rate.
Kevin Mutiso the DLAK Chair says that the move by Kenyans to embrace digital lending more is because they are offering solutions that businesses need.
The Credit Barometer showed that despite banks move to ease the processes for accessing a loan, majority of the respondents at 62% would rather borrow from the Digital lenders than visit a bank for loans, 22.1% opt to borrow from family and friends while only 15.9% go to access loans from banking institutions.
When asked what they wanted to do with the loans, 55.5 per cent of those interviewed said that they borrow money to invest in businesses including buying of stocks, compared to 24.8% that borrow to cover unexpected expenses. Only 13% of borrowers take the loans to cater for their educational needs like paying fees.
According to DLAK the insights in the report will help inform business decisions and policies by providing data that will help the digital lenders understand the trends impacting Kenyan households and businesses.
It was however listed that tough economic situations were the top most reason why most Kenyans would miss their loan repayment deadline- especially when businesses are not performing well.
Mutiso adds that Digital lending in Kenya has entered a phase of professionalization and institutional strengthening.
However despite more than 62 percent of Kenyans expressing hope and were confidence that life will be even better in months to come, the DLAK chairman says that the recent blacklisting freeze by CBK will lead to a reduction in loans uptake since lenders will be wary of issuing loans.
The report further states that The confidence to live is much higher for people with access to credit despite a general rise in cost of food, clothing, fuel, transport and utility bills.
