Kenyan digital lenders have agreed to waive the late repayment fees for borrowers to cushion them from the economic effects of the Covid-19 pandemic even as it emerged that the inflated charges levied by digital credit apps are pushing many borrowers into a debt trap.
A recent market survey by analysts at the Kenyan-based investment bank EFG Hermes shows that the bulk of the borrowings from digital platforms are below $50, with many as low as $1.50 while the lowest total cost of credit for a digital loan from an app is 352 per cent (on an annual basis).
