Nine in 10 Kenyans taking digital loans have reported improvement in their quality of life with about 89 per cent feeling more in control of their finances, a new survey indicates.
According to an impact report by global impact measurement company 60 Decibels, nearly half of the respondents were business owners, with 90 per cent saying the loans strengthened their ventures through higher sales, better profits or expansion.
This, as digital loans continue to reshape household and business finance in Kenya, with new data pointing to the growing role of mobile credit in daily life.
Borrowers also cited benefits beyond business with three-quarters saying digital loans helped pay for education, 84 per cent said they were able to manage household expenses more easily, and 55 per cent reported improved access to healthcare.
Women were more likely to be first-time borrowers, with a third saying Tala marked their entry into digital credit.
The findings echo a wider surge in demand for digital credit in Kenya. According to the Digital Financial Services Association of Kenya (DFSAK), digital lenders now disburse about Sh500 million per day, or roughly Sh15 billion each month, to millions of customers.
Industry data shows that uptake has accelerated rapidly. The FinAccess Household Survey found that 8.8 per cent of adult Kenyans used digital loans in 2024, compared to just 1.7 per cent in 2021.
Providers disbursed 5.5 million loans worth Sh76.8 billion by mid-2025, up from Sh55.2 billion the previous year, with the average loan size rising modestly to about Sh13,917.
With players such as Tala, Branch, M-Shwari and Zenka competing for market share, mobile credit has become a mainstream financial tool.
For small traders, students and households under economic pressure, quick access to unsecured loans has proved essential for meeting everyday needs and sustaining livelihoods.
From helping parents keep children in school to giving entrepreneurs the capital to expand, digital credit is positioning itself as both a household safety net and a driver of economic activity, one that millions of Kenyans are now relying on.
Central Bank of Kenya early this month
licensed an additional 27 Digital Credit Providers, bringing the total to 153 licensed firms.
This follows a previous licensing round of 41 firms in June 2025. The licensing process is ongoing, with the CBK having received over 700 applications, and aims to ensure compliance with the law and safeguard consumer interests.
