Government Joins Mobile Money Lending Business

The government of Kenya is set to launch its first ever mobile loan app in April 2019.  The Y-Mobile app is a brainchild of the Youth Enterprise Development Fund and will be used to disburse its loans to Kenyans. 

According to the Youth Fund Chairman Ronald Osumba revealed that the state corporation was seeking Ksh300 million from the National Treasury as part of efforts to provide more loans. “The demand is high and it is expensive to devolve officers to county and sub-county levels. I would rather have a platform which is accessible to somebody in a remote village,” stated Osumba. 

The fund noted that 80 per cent of the requests received were for short-term loans which could be effectively disbursed through the app.  The Y-Mobile will join the numerous mobile loan apps that are already operating in the country.

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