NAIROBI, Feb. 19 — Kenya’s digital mobile lenders’ revenues in 2020 shrank by more than 50 percent as compared to the previous year due to the COVID-19 pandemic, the industry said on Friday.
Kevin Mutiso, chairman, Digital Lender Association of Kenya (DLAK) told Xinhua in Nairobi that the industry was extending credit averaging 4 billion shillings (about 36.4 million dollars) per month in 2019.
“Our loans went down by more than 50 percent in 2020 due to the new government regulations put in place to regulate digital money lending after COVID-19 cases were detected in the country,” Mutiso added.
Mutiso said that between March and May 2020, the industry stopped lending due to new regulations on credit reference bureau listings and the industry only reopened in August with a new strategy.
“We decided to stop lending to everyone and we started focusing on niche markets,” he said.
According to DLAK, their members have an estimated six million digital loan customers who borrow an average of 36.5 dollars for a period of 30 days.