By Kennedy Nalyanya
Forget the long queues and paperwork! In Kenya, getting a loan is increasingly as simple as tapping on your phone. A new report from the World Bank, the Global Findex 2025, reveals a massive shift: 86% of all formal borrowing in Kenya last year happened through mobile money. That's right, traditional banks are taking a backseat as Kenyans embrace digital lending.
The numbers are pretty striking: a whopping 32% of adults in Kenya borrowed from mobile money providers, and for a significant chunk of them (25%), it was their only way to get formal credit.
So, what is driving this mobile money revolution?
It's not just about loans. Mobile money is woven into the fabric of daily life here:
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Friends, Family, and Chamas Still Matter: While digital is booming, Kenyans still lean on their trusted circles – friends, family, and informal savings groups (Chamas) – for financial help.
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Bridging the Gender Gap (Slowly): While women are leading the charge in many areas, they're currently less likely to borrow using digital wallets (16%). This highlights an area for growth in financial inclusion.
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A Growing Digital Lending Landscape: Kenya boasts 51 digital lenders approved by the Central Bank of Kenya, plus the government's own Hustler Fund, making it easier than ever to get quick credit.
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Farmers Go Digital: Even in agriculture, digital payments are taking over. 71% of farm-related payments in Kenya were made digitally, a stark contrast to cash-heavy transactions in neighbouring countries like Uganda.
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Bills, Bills, Bills... Paid Digitally! Paying for water, electricity, and even everyday shopping is increasingly happening on phones. Digital merchant payments jumped from 37% in 2021 to 56% in 2024.
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Global Leaders in Online Payments: Kenya is actually among the top countries worldwide for paying bills online, standing alongside digital giants like China and Brazil.
This digital payment surge opens up exciting possibilities. Imagine a small business selling handmade crafts online. The World Bank report points out that these businesses could potentially use their digital payment records as proof of income when applying for credit. This is huge for entrepreneurs who don't have traditional storefronts or easy access to bank loans.
While mobile money is clearly transforming financial access, one thing remains a constant concern for most Kenyan adults: school fees.
Ultimately, Kenya's thriving mobile money ecosystem isn't just about convenience. It's unlocking financial access, boosting digital inclusion, and fundamentally reshaping how people borrow and build their lives and businesses. It's a testament to how innovation can empower an entire nation.
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