Digital Lenders Adopt New Tactic as Kenyans Struggle to Repay Loans Below Ksh1,000

Hello and welcome to the Money News Roundup, where we cover the new tactic digital lenders are adopting as Kenyans struggle to repay loans of less than Ksh1,000. We also cover new proposals to grant select Kenyans free access to national parks.

Digital Lenders Adopt New Tactic as Kenyans Struggle to Repay Loans Below Ksh1,000

Digital lenders are adjusting their loan offerings as Kenyans who borrowed less than Ksh1,000 emerged as the biggest defaulters. Data from the Central Bank of Kenya (CBK) shows that 83.1% of these small loans defaulted in 2024, highlighting the challenge of recovering microloans from low-income earners.

In response, some lenders have raised their minimum loan thresholds above Ksh1,000 to qualify for listing defaulters with credit reference bureaus (CRBs), a move aimed at encouraging repayment. Under current regulations, lenders are barred from listing defaults below Ksh1,000 on CRBs, which has been linked to the high non-payment rates.

As reported by Business Daily, CBK data further shows that borrowers of larger loans were more likely to repay, with default rates dropping to 69.4% for loans between Ksh1,000 and Ksh5,000, and to 16.4% for loans between Ksh50,001 and Ksh100,000.

Digital lenders have become a key source of credit for many Kenyans, with more than 5.5 million borrowers and loans worth Ksh76.8 billion disbursed. However, the rising defaults have triggered a shift in strategy as lenders seek to manage risk and recover funds more effectively.

Elderly Kenyans and Kids to Enjoy Free Entry to National Parks in New Proposal

The Kenya Wildlife Service (KWS) has proposed new regulations to grant free access to national parks and reserves for elderly Kenyans above 70 years, persons with disabilities, children under five, and frontline tourism workers. 

As reported in the Daily Nation, the waivers will also cover tour drivers, guides, boat crew, and porters licensed by the Tourism Regulatory Authority, as well as fishing boats under Beach Management Units.

To benefit, individuals will have to present a valid ID or other relevant documentation. KWS Director-General Erustus Kanga explained that the changes in the draft Wildlife Conservation and Management (Access and Conservation) (Fees) Regulations, 2025, aim to ensure inclusivity and recognize the contributions of tourism workers. 

Insurance Company Linked to Ruto Becomes Matatu's Biggest Insurer

A firm linked to President William Ruto’s family has overtaken SK Macharia’s Directline Assurance as the leader in Kenya’s public service vehicle (PSV) insurance market. 

As reported in the Business Daily, Africa Merchant Assurance (Amaco), partly owned by Ruto’s family, increased its market share from 37.51% in December 2023 to 54.71% by the end of March 2025. 

Meanwhile, Directline’s share fell from 47.97% to 35.67%, amid ongoing shareholder wrangles, according to the Insurance Regulatory Authority (IRA). 

Directline has been facing internal shareholder disputes that have affected its operations.

Customers of Collapsed Chase Bank and Imperial Bank Get Ksh2.65B Payment

President William Ruto has handed over Ksh2.65 billion to the Kenya Tea Development Authority (KTDA) for tea farmers affected by the collapse of Chase Bank and Imperial Bank.

According to Capital Business, the funds recovered through the Kenya Deposit Insurance Corporation will compensate over 600,000 farmers. 

Ruto urged KTDA to ensure the money reaches growers. He also highlighted increased tea prices and earnings driven by agricultural reforms, noting tea earnings rose from Ksh138 billion in 2022 to Ksh215 billion in 2024, with a target of Ksh280 billion by 2027. 

65% of Kenyans Believe Cost of Living Has Worsened After Finance Bill 2025 - Poll

A new survey by TIFA Research shows that 65% of Kenyans believe the 2025 Finance Act has worsened the cost of living. 

The report, released on September 11, indicates that only 31% saw no impact, while 3% were unsure. 

As reported in Nairobileo, affected citizens cited rising prices of basic goods and services, higher taxes, reduced disposable income, and delays or cancellations of personal plans.

The survey notes that the Act is widely viewed as unpopular due to its direct impact on daily expenses and economic stability, despite government claims of improved service delivery.

Meanwhile, Eastleigh Voice, in its coverage of the poll, reported that one in four Kenyans is currently jobless. Only 25% are in full-time employment, 23% are self-employed, and 15% work part-time.

Boda Boda Riders to Wear Uniforms in New Reforms 

Boda boda riders will now wear uniforms specific to their sub-counties as part of new government regulations. The uniforms aim to distinguish operators by location. 

As reported by Citizen Digital, riders will also undergo fresh registration, indicating their designated areas of operation and belonging to a SACCO. 

Additionally, each stage will have a chairman who will be held accountable for any law-breaking by riders under their watch. To register, riders will also need to have a valid boda boda license, a certificate of good conduct, insurance, and two helmets.

The new regulations proposed by the government following the recent torching of vehicles in Nairobi by riders have already been shared with the Boda Boda Safety Association of Kenya.

“Each county will have its own registration, including sub-county and stage. If a motorbike commits an offence in Mombasa, we will know it’s from Nairobi, and from which part of Nairobi,” Fredrick Ochieng, Assistant Inspector-General of Police, stated.