Easy credit access risks financial health

As access to credit becomes easier, we need to assess whether this convenience is helping or hurting financial health.

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This week, the Central Bank of Kenya (CBK) approved another set of digital credit providers (DCPs), bringing their total number to 153.

In addition, they have directed banks to adopt a new Risk-Based Pricing Model anchored on the use of credit scores in determining interest rates. Are the two actions parallel or consistent?

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