Tala, one of Kenya’s most popular digital credit providers has revealed that it disbursed 3.5 million loans worth Sh240 billion in the last eight years.
The fintech started its operations in the country in 2014 and has grown to become one of the most reliable loan providers with a substantial client base.
In its 2022 impact report released on Tuesday 21, February, the company said that the loan repayment rate by its customers was at about 90%, terming it a huge success.
The lender further reported it had extended waivers amounting to Sh2.6 billion to hardship-stricken borrowers, most of which was waived during the Covid-19 pandemic.
“We have got a chain of agents spread out throughout the country where borrowers who are unable to pay due to special circumstances can call and request for a waiver,” Tala’s Director of Growth Annstella Mumbi said.
The firm says that 70% of its lending is to business, with the other portion going to individuals
Tala is among 22 Digital Credit Providers (DCPs) recently licensed by the Central Bank of Kenya (CBK).
“The top three self-reported outcomes for these 84% borrowers reporting an improved quality of life were: twenty-seven (27%) talked about improved access to finance, twenty-three (23%) mentioned the ability to afford household goods and bills and eighteen (18%) reported being able to buy inventory and stock for their small businesses,” the report says, “Tala’s digital loans had the biggest positive effect on individuals’ ability to cover household costs.”
The general financial environment is said to have recorded significant improvement, with more people taking short-term and loan term loans from digital lenders.
From Tala’s impact report. 44% of borrowers surveyed said their ability to save has improved, making borrowers feel more in control and less stressed about their finances because of Tala’s digital loans. 19% of borrowers surveyed reported that their ability to manage their finances has greatly increased and 13% said that their ability to make independent financial decisions has very much increased thanks to Tala.