Monetary transactions through cell phones have hit a new level in Kenya as the number has increased significantly to hit 2.1 trillion shillings from 1.427 trillion shillings during the same period last year.
This is according to data by the Communications Authority of Kenya (CA), which revealed that monetary transactions that were done through mobile phones increased to 47 percent.
The data is a clear indication that a good number of people prefer the use of mobile phones to transact money as opposed to the ordinary form of visiting the banks physically.
From the data, Safaricom’s Mpesa clinched the top spot as the most used mobile money service, with the latter dominating more the 80 percent of the transactions done at the end of June 2019.
CA points out that the mobile transactions were done mostly to acquire loans, sending and receiving money-both locally and internationally and payment of bills or goods and services.
According to CA, the lending rate has also increased significantly with Safaricom’s fuliza giving 6.2 billion shillings loans to Kenyans monthly, estimated at 200 million shillings on a daily basis.
The digital apps have also been on the rampant use, with a new study by Financial Sector Deepening Kenya, indicating that younger females (especially below 30 years) have been borrowing at a higher rate as compared to older women above age 30.
The study also indicates that most women are likely to go for digital loans out of curiosity as compared to men.
FSD shows that women use their loans and salaries to pay their bills, do shopping or support their friends or family members financially.
The digital mobile loans have been prevalent in the Kenyan digital sector, with CBK proposing to regulate their lending rates.
The regulator suggests that digital lenders are not supposed to be self-regulated, as they are likely to manipulate and exploit consumers while charging high interests on loans.
The loans are undoubtedly convenient when it comes to issuing quick-cash, but a good number of Kenyans have been put to depression and forced to seek other lenders to repay the loans-Making a mountain out of a molehill.