Youth benefit from financial literacy amid evolving digital lending

TransUnion Kenya CEO Morris Maina while releasing the Q4 2023 Kenya Credit Industry Insights Report. [File, Standard] TransUnion Kenya is intensifying efforts to boost financial literacy among the youth. The push comes amid growing concerns about responsible lending practices and the need for greater transparency in Kenya's rapidly evolving digital finance landscape. TransUnion Kenya CEO Morris Maina said that with the youth making up 75 per cent of Kenya's population, the importance of financial literacy and inclusive digital tools has never been more urgent with today's young entrepreneurs being bold, tech-savvy, and full of ideas, but often lack the financial knowledge and credit access necessary to turn ambition into sustainable success. "Financial health in digital lending means more than just giving people fast access to credit, it is about offering fair, transparent, and sustainable tools that support long-term financial well-being which begins with empowering our youth to build smart habits from the start, like saving, understanding debt, and knowing how to manage their credit profile," said Maina. The CEO said the financial literacy initiative aims to address widespread misconceptions about digital lending while these services are often perceived as merely transactional, which he termed a misconception. Maina explained that many of the digital lenders are intentionally designing products that promote responsible borrowing and long-term financial stability and not just quick disbursements since these platforms are now evolving to become not just financiers, but also educators embedding tips and tools into the user experience to help build trust and lasting financial health. He said the shift to digital lending has dramatically expanded access to credit for underserved populations, especially informal workers and young people with limited or no formal credit history. "This evolution in credit data is changing the game, since we are no longer just looking at loans and bank accounts, Mobile transactions and digital patterns can now signal responsible financial habits, opening new doors for the youth who are often excluded from traditional systems," he said. Maina noted that TransUnion Kenya emphasizes the need for ethical use of behavioral data to prevent financial exclusion with lenders having a responsibility to avoid algorithmic bias and use data to identify financial potential not to punish past mistakes. He said that transparency, consent, and user education must remain central to this approach, especially for young people who are still building their financial identity since to create long-term impact, trust must be built into every interaction. This includes clear loan terms, strong and compliant data privacy practices and educational support with young users wanting to understand how decisions are made by showing them how today's actions shape their financial future. "Many Kenyans can strengthen their financial future by starting with a simple budget to track spending and setting small, achievable savings goals by regularly checking their credit report helps build awareness and spot any errors, " said Maina. The CEO explained that using mobile money responsibly can establish early credit history, while borrowing only what's manageable avoids unnecessary debt. Staying informed through apps and online tools ensures continuous learning and smarter financial decisions. Maina argued that a collaborative approach across sectors could significantly enhance financial literacy efforts in Kenya, highlighting the value of mobile-first, culturally relevant programs that bring together FinTechs, lenders, educators, and regulators to equip users with practical credit-building tools and access to affordable financial products. "When these efforts are aligned, they can support users at every stage of their financial journey, tailored content on saving habits, debt management, and investment basics, especially when targeted toward young people can be a powerful lever for improving financial inclusion and resilience," said Maina. At the same time he urged Kenyans to take control of their financial health by regularly checking their credit reports through Nipashe application or by texting their name to 21272.

Youth benefit from financial literacy amid evolving digital lending

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