Why Kenyans Struggled to Get Loans in 2023 Compared to 2022- TIFA Poll

A majority of Kenyans struggled to get loans in 2023 compared to 2022 according to a report released by TIFA.

In the report released on Friday, December 29, TIFA noted that 53 per cent of Kenyans felt that getting a loan in 2023 was more difficult compared to 2022.

Only 24 per cent of the interviewed people reported that the prospects of acquiring loans had improved with 11 per cent arguing that nothing had changed.

According to TIFA the decline in accessing loans was attributed to lending stringent practices and other measures adopted by the Kenya Kwanza administration led by President William Ruto.

"This sentiment may be indicative of various economic challenges, including stringent lending practices, elevated risk perceptions by financial institutions, and broader uncertainties affecting borrowers," TIFA reported.

Moreover, TIFA reported that the employability prospects dropped in 2023 compared to 2022.

"The survey results highlight that a majority, 64 per cent, of Kenyans perceive a decline in employment opportunities in 2023."

In terms of the economy, the interviewed Kenyans noted that the situation had worsened compared to 2022. 

"A substantial 81 per cent of respondents say that the economic situation has worsened compared to the previous year. The survey results underscore a pervasive concern among Kenyans regarding the economic conditions in 2023."

Despite challenges, a majority of Kenyans expressed optimism over 2024 getting better compared to 2022. They told TIFA that the situation will change of the current administration takes into consideration their concerns.

"Policymakers and leaders may find value in understanding and aligning with the aspirations of the populace as they work towards shaping policies and initiatives for the nation."

The survey was conducted between November 25 to December 9, 2023, involving 1,587 respondents.