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An M-Pesa transaction. The Communications Authority of Kenya (CA) says that 97 out of 100 Kenyans have mobile phones, transacting almost Sh2 Trillion in three months www.exchange.co.tz

More than 7.6 million Kenyans have loans from multiple mobile loan apps with 2 per cent of these defaulting and being listed with the Credit Reference Bureaus (CRBs) in the country.

In a report by Metropol Corporation, more than 380,000 Kenyans have so far defaulted on loans taken from the mobile money lenders.

Due to this, the Kenyan parliament through the Information, Communication and Technology (ICT) Committee has urged the Central Bank of Kenya (CBK) to create regulatory measures of the sector especially on interest rates charged by the mobile money apps.

Metropol notes that on average, a borrower in the country has loans from at least six out of the 10 mobile money lenders.

This is despite the fact that mobile money loan apps charge unregulated interest rates.

Mobile lenders’ meteoric growth in Kenya

And to show how successful the lenders have been, Mobile lender Tala has disbursed loans …