Mobile loan app services

The move is aimed at curbing high rates of defaulting with Kenyans borrowing money from several mobile money-lending platforms before

In the new move, some companies are now reaching out to contacts on defaulters’ list through calls and texts urging them to compel the defaulters to pay the loans.

The new strategy seem to be working as multiple Kenyans admitted that it is an embarrassment to them and had since paid up their loans to avoid further embarrassment.

The calls and texts are sent to family, friends and colleagues at work, leaving the defaulter with no place to hide but to clear his name by paying up the debt.

Kenyans took to social media to share their experiences on the new way

“They started calling my colleagues at work. I even wrote them an email complaining, but they did not respond, yet I had told them I would pay the loan later no matter the interest,” one user wrote.

Another ranted labelling them thieves due to the high interest rates which had seen the interest charged on his loan almost double the amount.

Mushrooming mobile loan app services

Tighter credit regulations in banks has seen many Kenyans resort to mobile loan app services that have pitched tent in the country.

Mobile loan app services have mushroomed in the country with analyst warning that this is a dangerous trend with the country lacking a framework to regulate them.

Banks have also raised issues with the growing trend with Kenyans in need of cash but without collateral resorting to the apps.

Among the existing mobile money lending platforms are Tala, Branch, Zidisha, Saida, Mshwari, Okash, Usawa, Timiza, Stawika