Mobile loan consumers spending more on airtime than some key basic needs

A Central Bank of Kenya (CBK) financial stability report shows that airtime took up 15 per cent of digital loans, only trailing business (37 per cent), day-to-day needs (25 per cent) and education (20 per cent).

The findings back a previous World Bank study in 2013, which showed that many of Kenya’s poor would rather go hungry and walk to work than be short of airtime.

The most commonly-used digital lending product is the M-Shwari product, though competitors such as KCB M-Pesa, Equity Eazzy, Tala, M-Coop Cash and Branch are increasingly being used owing to the ease of borrowing on the platforms.

Full Article: Business Daily



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