As President Uhuru Kenyatta was addressing the nation on 4th April,2019 he mentioned the Gross Domestic Product(G.D.P) of Kenya had grown to 6.1%. Many people applauded him but the big question that has been triggering in many minds of Kenyans is the rate at which the government has been borrowing.

In accordance to the statistics analysis  , over 35% of the Kenyan youth especially those in universities have continued to extend their borrowing philanthropy in mobile apps. There are a variety of mobile apps that majority love to download in their smart phones. Some of these apps include: Tala, Branch, Timiza, Equitel, Haraka, Okash among others.

Imagine selecting at a random youths in a busy street and asking them whether they are aware of any loans apps…. You might be mesmerized that they can name at least 3 apps without a struggle. The borrowing nature has continued to be embraced by the youthful generation and even when you begin criticizing the government , just take a deep breathe and realize we have people who have been deep-rooted into borrowing by just a flip of their finger.¬†

Most of these apps do promise the lenders comfy lending rates and an instant disbursement of the funds in their Mpesa accounts and some even disburse them in the respective bank accounts for instance Equitel app. The youths have also been lured into borrowing without being keen on the interest rates that they are liable to cater for when they are repaying the loans.

The loan companies target small borrowers who have emergencies that arises at their respective places. Some people borrow for business purposes, health issues and some also borrow for miscellaneous expenses that could not be even be attributed. Imagine someone borrowing for buying things which they necessary don’t need. The trend continues to grow with the apps receiving humongous application on a daily basis.

The process of borrowing using the apps may seem to be fast compared to those who have to visit banks and Saccos and the legalities involved may seem to be quite long. As we ponder on that, do those who borrow read the terms and conditions ? Are they aware they share their details with these apps every time they apply for a loan with different apps? Most people share their email addresses, their contacts and even the messages they have been sending using their smart phones.

It may look simple to acquire loans but we need to understand a variety of issues surrounding the loan apps or else you may find yourself in a hot soup which will require time to recover.