Lazy journalists and corrupt KBA.
"Facilitation fee" is interest charged
Safcon alone easily exceeds 48% interest annualised on that point alone. Now ongeza late fees, etc for those who miss payments and you may find annualised interest to be over 500% for most of these lenders.
There is a conspiracy to get Kenyans into massive personal debt but people are not seeing it.Fuliza
Okoa this okoa that
Mobile loans at usurious rates
add betting firms (free easy money mentality) and you have a ticking time bomb
No wonder many on the economy thread are crying "economy ni mbaya" in a 5% GDP growth rate environment.
When you are up to the eyeballs in usurious 500% loans, how on earth do you hope to survive even in an economy growing at 10%
This is why I am against the push to make mortgages affordable. Our high interest rates for mortgages have been a GODSEND to Kenya because they have kept an overwhelming percentage of Kenyan property owners debt free. Such economies with high debt free homeownership rates are dangerous for the "powers that be" ("mashetani" both within and outside the country). Ask Greece and Singapore. Borrower is slave to the lender. A financially independent population is hard to control through any traditional levers at CBK. If you shut down their economy they have comfortable debt free farms and properties to go to until they die and you cannot tell them much.
Bottom line RUUUN from these personal loans dear Kenyans. They are even WORSE than the Casino (NSE).