Kenyans borrowed an average of Ksh.16,300 ($125.8) from digital lenders for the year ended December 2025, up 17% from Ksh. 13,900 a year earlier, according to the Central Bank of Kenya (CBK).
The reasons were practical, with the data showing 45% borrowed to restock their businesses, 37% to pay school fees, and 23% to cover day-to-day expenses.
The average loan grew modestly, but the number of loans surged. Digital loans rose 71% over the year to 6.74 million, while the total outstanding balance nearly doubled to Ksh.110.1 billion.
The number of licensed digital lenders also climbed, from 85 to 195, helping more people access short-term credit.
Full list of mobile lenders licensed by CBK: HERE
That growing reach reflects how easily borrowers can apply through mobile money and lending apps. In the 2024 FinAccess survey, 8.8% of adults said they had borrowed from a digital lender, up from 1.7% in 2021.
These loans bridge immediate gaps, helping a trader replenish stock and keep business moving, or giving a household a way to manage school fees and daily costs.