Heat on digital lenders as default rate hits up to 40pc

Digital Financial Services Association of Kenya

Digital Financial Services Association of Kenya chairman Kevin Mutiso. 

Photo credit: File | Nation Media Group

The default rate on popular digital loans hit highs of up to 40 percent in the year that ended last December, a new report by the sector lobby shows, piling pressure on service providers.

In contrast, defaults on commercial bank loans stood at 16.4 percent as of the end of December 2024, having dipped from 16.5 percent and 16.7 percent in October and September, respectively.

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