Latest figures from the Central Bank of Kenya indicate that nearly 8 out of every 10 loans in the country are now disbursed through digital channels, an inflection point underscoring the dominance of mobile lending in the financial system.
The latest integrated report by KCB Group paints a vivid picture of the scale and velocity of change.
The report shows that the lender is now disbursing an average of Sh1.5 billion in mobile loans every day, highlighting both the depth of demand and the efficiency of digital platforms.
In 2025 alone, its mobile lending volumes surged by 30 per cent to Sh544 billion, cementing digital credit as a cornerstone of its retail banking strategy.
This growth reflects the convergence of Kenya’s mature mobile money ecosystem, anchored by platforms like M-Pesa and increasingly sophisticated data analytics.
KCB’s flagship mobile lending platform, developed in partnership with Safaricom, has evolved into a powerful engine for financial inclusion, enabling millions of customers to access instant, unsecured credit.
The report hails data analysis for the growth, with the government-backed Hustler Fund emerging as a valuable source of borrower insights, providing lenders with granular information on repayment patterns, borrowing behavior, and risk profiles.
The lender says that this data has translated into sharper credit scoring models and faster decision-making processes.
“The result is a system where risk can be priced more accurately, approvals granted almost instantly, and loan volumes scaled sustainably,’’ the report says.
KCB reported an 11.8 per cent increase in profit after tax to Sh68.4 billion in 2025, illustrating how digital lending, when underpinned by reliable data infrastructure, can enhance not only access to credit but also the economics of banking itself.
The integrated report shows that product innovation also played a pivotal role.
Over the past year, the bank has introduced a suite of digital lending solutions tailored to emerging consumer and enterprise needs.
These include financing for electric mobility, working capital solutions for small businesses based on merchant cash flows, device financing, and its Digi-FLME offering.
Behind these offerings lies a continuous refinement of credit assessment models.
Enhanced application and behavioral scoring frameworks have expanded the pool of credit-eligible customers, driving a seven per cent year-on-year increase in eligibility and a 17 per cent rise in overall credit limits.
This pushed disbursement volumes up by eight per cent percent, reflecting both stronger uptake and increased borrowing capacity.
By introducing bi-monthly limit reviews for products such as mobile loans and salary advances, KCB has aligned borrowing limits more closely with customers’ real-time financial behavior.
This adaptive approach has allowed the bank to respond quickly to fluctuations in income and spending, improving both customer experience and portfolio quality.
The integration of transaction data from platforms like PesaLink has further strengthened credit decisioning.
By incorporating inflows from multiple digital channels, KCB has broadened its pre-scored customer base and offered more personalized credit limits.
This has triggered a steady rise in loan uptake across diverse segments, from formally employed individuals to informal traders operating outside traditional banking frameworks.
As competition intensifies among banks, fintechs, and digital lenders, the ability to harness data, innovate products, and integrate seamlessly into everyday financial ecosystems will likely determine the next phase of growth.
According to the report, the rapid expansion of digital credit represents the next frontier, one where access, speed, and intelligence converge to reshape the very nature of lending.
