The Digital Financial Services Association of Kenya (DFSAK) reported disbursing over Kshs 500 billion in mobile loans to small businesses and households over the last eight years. This report comes just after the association’s recent rebranding from Digital Lenders Association of Kenya to Digital Financial Services of Kenya with a goal to bring more players together in the financial services ecosystem and be more responsive to dynamic customer needs thus deepening financial inclusion among these customers.
The chairman of DFSAK, Kevin Mutiso, during the Digital Finance Summit 2023 in Nairobi, reported that more than 8 million Kenyans have benefitted from affordable mobile micro-loans to lift households out of poverty and support their businesses as well.
Additionally, the association is projecting a growing demand for mobile credit loans as small businesses are turning to online marketing platforms seeking growth funds. Key to note is that this demand is majorly attributable to the rising use of e-commerce especially among the young population.
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In a strategic move to take advantage of these projections, DFSAK plans to grow their portfolio of financial services by developing new digital services such as digital insurance, digital savings plan and digital investments platforms while bolstering financial literacy levels and overseeing licensing of more providers.
Additionally, DFSAK said that it will continue fostering meaningful engagement with the government in an effort to spotlight the bad-actors in the sector and effectively reduce the harmful lending practices that have been previously witnessed in the country.
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