Borrowers need vital lessons on pitfalls of mobile money lending

The African e-Commerce Week recently held in Nairobi provided a platform to discuss the importance of digital trade for Africa’s development and structural transformation. Different panelists spoke of its potential to generate benefits and opportunities that could empower and promote inclusive growth. Agriculture, MSMEs, women traders and the youth were identified as potential gainers. With regards to digitisation, Kenya was singled out as a global benchmark in the advancement of mobile money technologies for broader financial inclusion.

Dating back to March 2007, mobile money platforms in the country have provided financial services to the unbanked, made it easier to transact business as well as conveniently pay utility bills. At present, mobile money lending services is the latest innovation in the arena with numerous applications offering instant loans which are disbursed via mobile money.