Welcome, Guest: Join Kenyans247 Log In!

Stats: 306 Members, 16,695 topics and 65 posts Date:  Friday 05 March 2021 at 12:55 AM
Popular & Trending NewestFeatured Links ClassifiedDirectoryLivescoresLive Kenyan TVLive Kenyan Radio Follow Us Like Us

About Us Terms & Conditions Privacy Policy FAQ's Disclaimer Copyright Contact Us Advertise With Us Download K247 APP Marketplace Moderator Policy We Are Hiring Kenya Radio and TV Stations Listen and Watch Live Letter From the C.E.O Kenya Radio Stations Live Kenya TV Stations Live Kenya - Newspapers and News Sites and popular blog Forum Rules

Parliament advisory warns over digital loans

Kenyans247 / Kenyans247 / General / Business / Parliament advisory warns over digital loans

42 people viewed

List Of Authorized Investment Advisors In Kenya 2019 Entrance To Kenyan Parliament 'vote For What'?: Venezuelan Opposition Boycotts Parliamentary Election Rwanda Women Parliamentary Forum
(Go Down) (» Reply topic)
Parliament advisory warns over digital loans by Kenyans247(1): Thu 18, February, 2021 12:53pm
The proliferation of digital mobile loan apps in Kenya which offer highly-priced, short-term credit has hurt growth in long-term investments, a professional unit which advises lawmakers on financial and economic matters has said, warning this is dampening sustainable economic growth.

Analysts at the Parliamentary Budget Office (PBO) say low-income households and small businesses have been plunged into debt traps, making it hard for them to borrow for long-term investments.

“The rise of short term, high interest digital credit uptake particularly by low-income households has contributed to an increase in household indebtedness,” the PBO researchers wrote in a report titled Evading recessionary pressure under a mounting debt burden.

“These loans typically solve short-term liquidity problems in households and small businesses but are not significant enough to facilitate long-term investments amongst borrowers.”

The mushrooming of dozens of stand-alone, unregulated mobile digital lenders, which peaked during the time interest rates were capped have been blamed for saddling borrowers with high loan charges, sometimes hovering around 200 percent when annualised.

This has led to mounting defaults resulting in a ballooning number of borrowers being negatively listed with credit reference bureaus (CRBs).

More than 14 million or 12.73 percent of 110 million loan accounts in Kenya, majority of whom are digital, have been flagged as defaulters, injuring creditworthiness of borrowers.
kenyans247
The parliamentary budget analysts reckon the debt traps have also hit the middle-class who are touted as key drivers of growth in a consumption-based economy.

“The high purchasing power of the middle-class is a significant factor in enhanced consumer spending leading to a higher aggregate demand and therefore higher economic growth,” PBO analysts wrote in the report.

https://www.businessdailyafrica.com/bd/corporate/companies/parliament-advisory-warns-over-digital-loans-3295182

0 Shares 0 Like •

(» Go Up)

You must Sign in or Sign Up to post content

For you to post content on this website you have to log in or register, it only take few minute to create account

Go Up

Recommended for you

Coalition Of Youth Assembly Tracks 5for5 Demands At A Model Parliamentary Plenary Session – A Must Read 10th Parliament Of Kenya Parliament Advisory Warns Over Digital Loans 2013 Rwandan Parliamentary Election

Currently: 1 guest(s) reading this article

Sections: Autos, Family, Africa, Business, Kenyans247 ads, Webmasters, Education, Building/Architecture, Technology Market, Art, Graphics & Video, TV/Movies, Music/Radio, K247 TV, Gossip, Celebrities, Somalia Forum, Rwanda Forum, Ugandan Forum, South Sudan Forum, Tanzania Forum,

About Us | Terms & Conditions | Privacy Policy | FAQ's | Disclaimer | Copyright | Contact Us | Advertise With Us | Download K247 APP | Marketplace | Moderator Policy | We Are Hiring | Kenya Radio and TV Stations Listen and Watch Live | Letter From the C.E.O | Kenya Radio Stations Live | Kenya TV Stations Live | Kenya - Newspapers and News Sites and popular blog | Forum Rules | Featured LinksFollow Us on TwitterLike Us on Facebook

Kenyans247 - Copyright © 2019 - 2021 Sande Kennedy. All rights reserved. See How To Advertise.
Disclaimer: Every Kenyans247 member is solely responsible for anything that he/she posts or uploads on Kenyans247.