A new impact report by digital lender Tala Kenya has revealed that a majority of its borrowers are using business loans to invest in inventory, underlining the platform’s critical role in supporting micro and small enterprises across the country.
According to the report, 78 percent of borrowers who accessed Tala loans for business purposes used the funds to buy inventory to sell at their shops. In comparison, only 15 percent used the loans to purchase farming supplies, highlighting the platform’s strong linkage with retail and small trade operations.
“The report validates the transformational power of digital credit and demonstrates we are changing lives. The impact is real, measurable, and Tala remains deeply committed to building financial systems that work for everyone,” said Annstella Mumbi, General Manager of Tala Kenya.
The report also found that 9 percent of respondents used business loans to pay employee wages, while another 5 percent used the funds to purchase livestock and raw materials, respectively.
Beyond business, Tala loans are serving a broad range of personal and emergency needs. Three out of five borrowers on the platform take loans for non-business reasons, such as emergency expenses, education, household costs, and healthcare. Of these, 48 percent reported using the loans for emergencies, 41 percent for education, and 20 percent for managing household expenses.
Other uses included personal or household events (12%), health expenses (11%), home improvements (9%), personal education (5%), and repaying other debts (1%).
The report paints a positive picture of the impact of digital lending on borrowers’ lives. An impressive 90 percent of respondents reported an improvement in their quality of life, while 89 percent said they felt more in control of their finances. Additionally, 90 percent of borrowers worry less about money, and 80 percent felt confident they could raise Ksh 12,182 in an emergency significantly above the national average of 60 percent.
Notably, 60 percent of women surveyed said that using Tala had made them more confident in making financial decisions, underscoring the platform’s contribution to women’s financial empowerment.
