• Daniel Mutemi Kiraithe Mount Kenya University-Kenya


Purpose of the study: This study sought to assess the influence of mobile-based lending practices on credit consumer behaviour in Embu County, Kenya. The objectives were to determine the influence of mobile-based loan application, receipts and repayment practices on credit consumer behaviour.

Problem statement: Mobile lenders have exponentially increased in the market. Some of the lending platforms are, however, not regulated by the Central Bank of Kenya and thus operate with potential of exploitation to customers who have shown a great appetite for loan products. Studies have shown the use of available credit products offered as digital finance has not in any way been able to improve consumers’ lives and their livelihoods in Kenya. Further, about 1 million credit consumers or borrowers do not understand the applied interest rates and regime but are willing to borrow digitally or via mobile. The mobile-based credit decision is influenced by some activities in the value chain that make consumers make decisions that are not rational.

Methodology: A mixed methodology of research was adopted together with a survey design, which was the most appropriate for the methods chosen. The target population of 549,098 people with mobile phones living in Embu County was identified. A sample of 100 respondents was interviewed randomly using a semi-structured questionnaire. Using simple comma-separated values (CSV) file for recording results, Python version 3.7 was used to analyze the data.

Results of the study: The results showed all the three variables have a significant influence on credit consumer behaviour. The key findings of this study were loan application practice is the most influential activity in credit consumer behaviour. Additionally, there is a significant number of credit consumers in Embu county, majority who are young male consumers.

Conclusion: Cash urgency and speed of the process influence consumers to make decisions that are not rational. Mobile credit consumers are seeking faster and convenient practices

Recommendations: The researcher recommended activities that make up the loan application, receipt and repayment should be made more efficient to enhance speed, convenience and simplicity. Innovative products to attract other segments of consumers should be developed.


Keywords: Loan application, Loan appraisal, Loan repayment, Credit Consumer behaviour.

Author Biography

Daniel Mutemi Kiraithe, Mount Kenya University-Kenya

Graduate Candidate, School of Business and Economics


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How to Cite
Kiraithe, D. M. (2020). INFLUENCE OF MOBILE-BASED LENDING PRACTICES ON CREDIT CONSUMER BEHAVIOUR IN EMBU COUNTY, KENYA. African Journal of Emerging Issues, 2(2), 1-19. Retrieved from