Big Blow To Kenyans With Tala And Branch Loans, Loan Lenders Take A Radical Action

When the digital mobile loans were introduced into the country very many people rushed to borrow since they taught that they could easily walk away without paying.

Mobile loans have really helped very many people to settle their bills and deal with emergencies that came very unexpected.

The main challenge most people have encountered is the high interest rates that the loaning apps charge in the country.

The Central Bank of Kenya is trying to come up with ways of dealing with the unlicensed digital lenders which are exploiting Kenyans.

During the Corona virus pandemic many Kenyans were negatively affected financially and thus they sought refuge from the mobile loaning apps. Unfortunately some have been unable to settle the loans.

According to a report by Daily Nation newspaper, digital loan lenders have made a decision to lock out Kenyans who have a bad credit history.

“It is very strange since no digital lender is willing to extend credit to me yet I have been borrowing for long. I have no idea why my borrowing limit has reduced to zero,” Mr Ashiono lamented.

A report released in June 2020 by research firm Geopoll titled “Financial Impact of Covid-19 in Sub-Sahara” said 36 per cent of Kenyan respondents said they relied on loans to cover basic expenses like food while just 16 per cent said they rely fully on their incomes In April last year.