Prioritise savings to secure long-term financial health - Business Daily

Mobile lenders disbursed over Sh133 billion in microloans to 7.5 million borrowers. Default rates on advances under Sh1,000 exceeded 80%, with one in six falling into complete default. Many borrowers use loans for daily expenses and non-essential spending, even betting. Short repayment windows and accumulating penalties worsen the situation, while blacklisting at credit bureaus restricts access to formal credit for years.