Tala report highlights increase in loan demand, women primary borrowers for education loans

This is according to Tala’s anonymized self-reported data from loan applications between 2019 and 2023.

While there is a surge in loan uptake during the back-to-school months of January, August and September, approximately 10-15 % of all loans taken by Kenya customers are used for school-related purposes.

One notable discovery emerging from the research encompassing all four markets within Tala’s operational scope is the predominance of women in getting education loans. Specifically, in Kenya, close to 50% of all education loans are taken by women.

“In general, research on spending patterns suggests that when women have the opportunity to use financial services such as credit, households tend to direct increased financial resources toward children, education, and healthcare. Consequently, this contributes to the overall well-being and productivity of their families," explained Teddy Kahiro, User Research Manager at Tala.

Education remains a crucial aspect for families globally. While public education is prevalent in Kenya, it entails supplementary expenses such as supplies, uniforms, transportation, and textbooks, as well as CBC-based assignments and activities that incur extra expenditures, all of which families must personally bear.

“The findings from this research remind us of the financial burden tied to these expenses. The rising costs of education add a layer of challenge for both parents and students in effectively managing their finances and maintaining peace of mind."

"At Tala, we are dedicated to providing comprehensive financial solutions and addressing the increasing costs of education. We firmly believe that such initiatives are essential for the improvement of our communities and are pivotal in shaping a more equitable and promising future for all,” concluded Teddy.