Fintech credit provider Tala has loaned out a cumulative $1.9 billion (Sh239.8 billion) to Kenyans in over 3.5 million disbursements since it started operations in the country in 2014.
The revelation was made on Tuesday during the unveiling of the lender’s 2022 impact performance report where the firm stated that it has attained an average of 90 percent repayment rate from its customers terming it a huge success.
During the eight years, Tala has accorded up to Sh2.6 billion worth of waivers to hardship-stricken borrowers, a significant chunk of which was extended during the Covid-19 pandemic.
“We have got a chain of agents spread out throughout the country where borrowers who are unable to pay due to special circumstances can call and request for a waiver,” explained Tala’s Director of Growth Annstella Mumbi.
“There are different structures for waiver including slashing of the interest rates, reduction of amount payable or even full erasure depending on the case presented.”
The firm, which says its loan pricing model is risk-based, states that 70 percent of its lending is to businesses while the rest is to individuals.
The mobile lender says that the recently launched government-backed credit facility Hustler Fund has not eaten into their market share yet, explaining that the two products target different clientele.
“Our average ticket size is between Sh13,000 and Sh15,000 and that’s completely different from what the Hustler Fund is offering. We however foresee a danger when the second phase is launched as it will be targeting SMEs and will involve higher amounts,” stated the company’s General Manager Munyi Nthiga.
Backed by the recent certification by the Central Bank of Kenya, Tala says it is eyeing over $10 million (Sh1.3 billion) in funding from undisclosed partners, confirming that the discussions are ongoing albeit currently at an infancy stage.
The lender aims to grow its customer base five-fold by the close of next year, saying the demand for credit, especially by SMEs, is huge and will remain insatiable for a considerable period.
Kenya has a market gap of $19 billion (Sh2.4 trillion) for SME financing, which Tala says creates a huge opportunity for expansion.
