Digital lender roots for financial education

 Many business owners face challenges in accessing financial management training. [Courtesy]

As Kenya's financial services sector continues to expand and more individuals and businesses seek access to credit, financial literacy is increasingly recognised as a critical factor in promoting responsible borrowing, strengthening businesses and supporting long-term economic growth.

Speaking at Oya Micro Credit Kenya's fourth-anniversary celebrations, Chief Executive Wycklife Ochola said client education has become a central pillar of the company's operations, helping borrowers make informed financial decisions and supporting business sustainability.

"Credit is a powerful tool for economic empowerment, but it must be accompanied by financial education. We have learnt over the past four years that when clients understand how to manage their finances and use credit responsibly, they are more likely to succeed in their businesses and achieve their personal financial goals," he said.

The remarks come at a time when access to financial services has expanded significantly across Kenya, driven by mobile banking, digital lending and the growth of microfinance institutions. While these developments have increased access to capital, concerns remain about financial literacy levels among borrowers and the ability of some households and businesses to manage debt effectively.

According to Ochola, many entrepreneurs, particularly those operating small and medium-sized enterprises (SMEs), continue to face challenges with budgeting, cash flow management and financial planning.

"We have seen many businesses with great potential struggle not because they lack customers, but because they lack the financial knowledge needed to manage growth and maintain healthy cash flow," he said.

He added that access to credit should be accompanied by practical guidance that enables borrowers to make informed decisions.

"When people understand how to budget, track expenses and plan repayments, they are better equipped to use loans productively and avoid financial distress," he said.

Kenya's SME sector is widely regarded as the backbone of the economy, accounting for a substantial share of employment and economic activity. However, many business owners continue to face challenges in accessing financial management training, despite the important role they play in supporting livelihoods and growth.

To bridge this gap, Oya Micro Credit has integrated financial education into its lending model. Before receiving loans, customers receive guidance on responsible borrowing, repayment planning and business management.

"We do not view our relationship with clients as a simple lender-borrower transaction. Our goal is to build long-term partnerships by helping customers understand how much they can comfortably borrow, how to manage repayments and how to grow their businesses sustainably," Ochola said.