A new report has revealed that slightly over a third of consumers have increased their borrowing, aligning with the landscape of rising cost of living expenses and income delays. In a survey done by Tala, the company has revealed six top loan options for Kenyans as the economy bites.
According to the findings, Kenyans are increasingly depending on digital lending applications for their loans, with banks and family support coming in second and third, respectively.
“Consumers are increasingly sticking to only 1 lender, predominantly digital lending apps. Borrowing from banks is the next biggest source of loans, quite significant compared to other sources,” read a statement from the survey
- According to the survey majority of Kenyans borrow from digital lending apps with 92% of respondents indicating that they have used digital loan or lending apps, making them the most popular source of loans in the country.
- Despite the rise in use of digital lending apps as loan options consumers till prefer the traditional options for borrowing loans like banks with loan consumers in Kenya wo borrow loans from banks standing at 32% .
- Another loan option for loan consumers in Kenya is borrowing from family and friends, which stands at 26%.
- Elsewhere, about 21% of Kenyans turn to cooperatives for loans
- Meanwhile, the survey also indicated that a small but notable 4% of respondents reported borrowing from unofficial or informal lenders.
- The survey also indicated that only 2% of respondents have accessed loans from government programs.
Borrowing Habits Shifting
The report also highlights a shift in borrowing habits over the past few years. In 2025, 52% of consumers used only one digital lender on average per month, up from 42% in 2022.
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Economic Pressure Driving Behavior
With 35% of consumers increasing their borrowing in the past six months, the data reflects the economic pressures faced by many Kenyans. The rising cost of living and delays in income are pushing more people to seek financial assistance through various channels.
The report also highlighted that the primary reasons why consumers borrow money are to cover essential and business-related expenses.
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The top three reasons are business expenses (43%), education (35%), and day-to-day living needs (24%). Medical and emergency expenses follow closely at 18% each, while starting a side hustle (17%) and paying off another loan (15%) are also significant reasons.
Less common reasons include home improvement (13%), starting a business (9%), and farming supplies (7%). Borrowing for personal or leisure-related expenses, such as travel (3%) and personal enjoyment (3%), remains minimal. This suggests that most borrowing is driven by financial necessity rather than discretionary spending.
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