Buying electricity tokens most expensive form of digital lending for Kenyans
A report has revealed that buying electricity tokens is the most expensive form of digital lending.
Consumers pay up to 43.4 percent on the loan dubbed Okoa Stima.
“Okoa Stima allows you to borrow any amount based on your pre-determined credit limit. This limit is based on your historical relationship with Kenya Power. The loan comes at a facility fee of 10% and is payable in 7 days,” a statement on the Safaricom website reads.
Other expensive digital lenders that were listed on Friday include Pesa na Pesa at 43.4 percent and Kopa Chapa at 38.8 percent.
Pesa Pata was ranked fourth at 30.4percent followed by Kopa Cash and Tala 15.3percent and 12.7percent respectively.
The report titled Digital Credit, Financial Literacy and Household Indebtedness also cited Branch lending app at 7.6percent.
The study was presented at this year’s Annual Banking Research Conference in Nairobi on Friday.
The findings in the report further revealed that those who have used the digital lending apps have little knowledge about interest rates.
Bankers were also faulted for not educating their customers on the same.