Effects of digital credit on the financial health of youth in Nairobi
Date
2022
Authors
Wang’ombe, Jesse Ruga
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Journal ISSN
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Publisher
Strathmore University
Abstract
Digital credit has within the last seven years become the main channel through which the majority of Kenyans acquire loans. Its rapid adoption has brought with it several positive and negative unintended outcomes such as increased default rates and negative listings on the Credit Reference Bureau. Furthermore, the largest user segment of digital credit is the youth. This study seeks to assess whether digital credit impacts the financial health of the youth in Nairobi. The study has four primary objectives. These are to evaluate the effect of digital credit on the rate and amount of savings of youth in Nairobi, to assess the effect of digital credit on the rate of borrowing among the youth in Nairobi, to examine the effect of digital credit on the rate of defaults among youth in Nairobi and to assess the utilisation of digital credit by the youth in Nairobi. The study utilised a questionnaire to get primary data to assess the effect of digital credit on the financial health of the youth in Kenya. The questionnaire was disbursed electronically. The study found that there was no significant effect of digital credit on the financial health of youth in Nairobi as measured by the savings and borrowings metrics.
Description
A Research Project Submitted in partial fulfillment of the requirements for the Degree of Bachelor of Commerce at Strathmore University