NAIROBI, Kenya, Feb 26 – More men borrow from digital lending platforms as compared to women, a study by the Competition Authority of Kenya (CAK) has shown.
According to CAK, men are registered on multiple digital borrowing platforms as compared to their female counterparts.
“There was multiple borrowing among male than female borrowers with 9.71% of men having more than one account as compared to 7.74% of women,” CAK report read.
“Borrowers aged between 25-44 years held multiple accounts at 11.08% while adults aged 45-64 years recorded 8.01%,” it added.
Similarly, the survey found that 77 percent of people who used mobile loans could not be able to repay back. This is similar to the high rate of penalty fees that digital borrowers face.
Subsequently, the study revealed that the price of digital credit was relatively high, with a mean effective annual percentage rate (APR) of 280.5 percent and a median effective APR of 96.5 percent.
The study, which was conducted in 2021, was released during the Authority’s inaugural Competition and Consumer Protection Law Digest last Friday.
CAK’s Law Digest was developed in collaboration with the National Council for Law Reporting (Kenya Law).
It aims to bolster understanding of competition and consumer protection law in the country, expose stakeholders to the authority’s decision-making processes, and further develop jurisprudence.
