Why digital lenders defied soaring loan default rates this year

The digital credit market also experienced an influx of new players in 2024.

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Digital lenders escaped record loan default rates this year, defying a challenging economic environment that left commercial banks bearing the brunt of the crisis.

Non-performing loans (NPLs) in banks reached a historic 16.7 percent in August, with borrowers failing to service advances worth Sh630 billion, eroding the asset quality of commercial banks.

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Note: The results are not exact but very close to the actual.