Non-deposit-taking microfinance firm Little Pesa emerged as the overall best digital lender in Kenya for the year 2025.
The firm emerged as the winner during the inaugural Digital Lenders Awards 2025 hosted by Think Business Ltd on Tuesday, April 1, which brought together over 20 Central Bank of Kenya (CBK)-regulated digital lenders.
Also, Little Pesa emerged as the best mobile digital lending app and the best digital lender in governance.
The non-deposit-taking microfinance was formed in 2018 after taking the necessary Letter of No Objection (NOC) from CBK. The company started lending in January 2019.
Rakesh Kashyap is the founder and managing director of Little Pesa. Rakesh is a veteran banker who has worked in senior positions in the banking sector for over 42 years—25 years in India and over 17 years in Kenya.
Profile of Rakesh Kashyap
His illustrious career kickstarted in 1975 when he worked as the Chief Manager in Bank of India for 30 years.
Upon leaving the bank in 2004, he joined Credit Bank Ltd, where he worked for 4 years before joining M Oriental Bank Ltd.
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At the lender, Rakesh held the role of General Manager between 2008 and 2015 before he was promoted as CEO, a role he held until he left the bank in December 2017 to take up micro–finance business leading to the launch of Little Pesa.
“I had had enough of banking in those 42 years – dealing with borrowers all the time and sometimes fighting over loan collateral. I found another love in digital microfinance,” said Kashyap in a past interview with Business Daily.
Little Pesa was initially extending only short-term loan limits to salaried persons.
However, the company currently has three product offerings which include product financing loans, flexipay loans and short-term loans.
Little Pesa loans
For product financing loans, borrowers can buy products from select retail shops up to Ksh300,000 and the same can be repaid in monthly instalments spread over 3-12 months.
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The rate of interest is 5% per month (p.m.) for 3 months, 4.5% p.m. for 6 months, 4% p.m. for 9 months and 3.5 % p.m. for 12 months.
On the other hand, borrowers can avail higher limits of Ksh300,000 for flexipay loans, with the repayment spread over 3-12 months.
Competitive Interest Rates of 6% p.m. for 3 months, 5.5% p.m. for 6 months, 5% p.m. for 9 months and 4.5% p.m. for 12 months.
Short term loans on their part offer borrowers up to Ksh300,000 for 7 days, 15 days, 30 days and 62 days.
The rate of interest is 4%,6%, 8% and 18% for 7 days, 15 days, 30 days and 62 days respectively.
If a borrower is unable to repay the loan within the stipulated period, the loan is automatically rolled over for another 7 days, 15 days or 30 days as the case may be at 2% over the original rate of interest.
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