A recent report reveals that one in six Kenyan adult borrowers, totaling 16.6 percent, defaulted on their loans in 2024, a significant increase from 10.7 percent in 2021. This surge coincides with the rise of mobile and digital lending, making credit highly accessible but also increasing financial risks, especially for young borrowers.

• TransUnion Kenya has expressed concern, urging young Kenyans aged under 35 to proactively manage their credit health using its free mobile tool, Nipashe.
• TransUnion Kenya CEO Morris Maina emphasized that while credit can be an enabler, a lack of financial literacy risks trapping many in debt cycles.
• In 2024, the digital lending sector disbursed approximately Sh180 billion, with between Sh54 billion and Sh72 billion written off due to defaults, illustrating up to a 40 percent default rate.