A recent analysis by global impact measurement firm 60 Decibels, commissioned by digital lender Tala, sheds light on the evolving borrowing habits of Kenyans, highlighting digital credit as a powerful driver of improved living standards, business development, and reduced financial anxiety, with women showing notable gains.

The report, drawing from direct feedback of Tala’s customers, found that nine out of ten Kenyans who took digital loans experienced an improved quality of life.

Additionally, 89 percent of borrowers said they felt more in control of their finances after accessing credit digitally.

The study also highlights how digital loans are reaching previously underserved groups, with 25 percent of borrowers taking out a digital loan for the first time women making up a significant share of this group at 33 percent.

While many loans were used for urgent needs such as emergencies and education, over half (53 percent) were directed toward business activities.

Among these entrepreneurs, 90 percent reported a more positive outlook for their businesses, citing increased profits, higher sales, and expansion opportunities.

Financial well-being showed marked improvement, with nearly 80 percent of borrowers enhancing their money management skills and 88 percent worrying less about their finances.

This positive effect was even stronger among women, with 80 percent reporting better financial decision-making compared to their male counterparts.

The benefits extended beyond business, positively impacting households.

The loans contributed to increased spending on education for 75 percent of borrowers, helped 84 percent better manage household expenses, and led to improved meal quality for 69 percent of families.

Overall, the findings underscore the role of digital credit in empowering individuals economically and improving household resilience across Kenya.