As of March 2024, the Central Bank of Kenya (CBK) had licensed 51 digital credit providers (DCPs), and mobile loan apps, to operate in Kenya.
CBK licensed an additional 19 DCPs in March, on top of the initial 32 that had been licensed the previous year.
These loan apps have become essential to Kenyans in need of quick and easy loans, providing alternatives to visiting banks and microfinance companies.
These mobile loan apps offer different loan amounts, interest rates, terms and conditions, and even modes of application.
Among the accredited DCPs is Giando Africa Limited, which trades as Flash Credit Africa in Kenya.
Flash Credit offers salary advance loans to employed Kenyans earning a net salary of Ksh30,000 and above, with a tenure of one month.
The loan interest rate is 20 percent, with rollover charges of Ksh1,000 and incidental/collection charges of Ksh1,000 per visit, plus Value Added Tax (VAT).
Inventure Mobile Limited, trading as Tala, ranks among the popular digital lending apps in Kenya.
It operates in four countries across three continents and provides a quick way for Kenyans to access loans to meet different financial challenges.
Tala offers fast-growing cash limits of up to Ksh50,000, with interest rates starting at 0.3 percent per day.
Jijenge & UbaPesa Loan Apps
Jijenge Credit Limited was established in 2014 to address the pressing market demand for accessible working capital solutions for individuals and Small to Medium Enterprises (SMEs).
Jijenge offers asset financing, bid bonds, title deed loans, and car repair financing. It provides credit amounts of up to Ksh10 million, with interest rates as low as 3.75 percent.
UbaPesa Limited allows Kenyans to lend and borrow money in real time. It charges a loan interest fee per installment, varying between 0 percent to 15 percent, depending on the repayment period.
UbaPesa also charges 10 percent of the principal amount as a facilitation fee associated with the technology enabling the transaction of borrowing and loan processing.
Umoja Fanisi & Zenka Digital Limited
Umoja Fanisi Limited operates in Uganda, Kenya, and Zambia with the aim of providing financial inclusion for all women.
Fanisi provides loans exclusively to women, offering between Ksh20,000 and Ksh30,000 for the first loan.
The interest charged is dependent on the loan tenure: 10-week and 15-week loans have a 10 percent interest charge per annum, whereas the 25-week loan has a 12.5 percent interest charge per annum.
Also Read: CBK Reveals Banks with Highest & Lowest Loan Rates
Zenka is one of the most flexible personal loan platforms, giving Kenyans more control over their finances.
It offers a simple registration and application process, after which the customer receives the loan directly to their M-Pesa account.
Loan amounts range between Ksh500 to Ksh50,000, with an interest fee of 9-39 percent of the principal amount.
Zenka also charges a processing fee ranging from Ksh45 to Ksh5,800, using a 61-day loan payment term.
For example, for a 61-day loan with a principal amount of KSh1,000, the interest fee would be KSh290, and the total amount due would be KSh1,290.
There is no minimum payment period for repayment; customers can make payments towards their principal amount at any time after disbursement.
Also Read: How Ruto’s Govt Paid Ksh218 Billion in Loan Interest Over 12 Months
Ngao Credit Limited & Okolea International Limited
Ngao Credit Limited is a non-deposit-taking microfinance institution, founded with the main goal of providing financial services to the underserved.
It has branches in Nairobi Upper Hill, Nairobi CBD, Mombasa, Nakuru, Eldoret, Kitengela, Thika, and Meru.
The interest rate is between 3.5 percent and 7.5 percent, depending on the product chosen and the repayment period.
Okolea International Limited is a Fintech company providing financial solutions to Kenyans, especially to micro, small, and medium-sized businesses.
It charges an interest rate of 11.15 percent, plus a risk markup for loans of 30 days. The risk markup depends on the account user’s risk profile, which can be low, medium, or high.
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