The portfolio of non-performing digital loans extended by banks is consistently higher than that of the entire bank loan book. Statistics from Central Bank of Kenya (CBK) show that the non-performing loan (NPL) ratio for bank digital loans averaged 11.4 percent as compared to 9.69 percent for all bank loans. Digital loans are easy to obtain and short-term but carry a high interest rate. The interest rates for many digital loans are about double what banks offer,” he says. Both Valerie and Peter say they knew before taking the digital loans that they would have to pay high interest and other fees.

Source: Daily Nation March 15, 2019 20:37 UTC