In Kenya’s competitive financial sector, it’s no longer enough for lenders to simply lend money.
With digital lenders and banks crowding the space, financial institutions
are starting to realise that how they treat their customers, and how well they
help them understand money, matters just as much as the credit itself.
Demulla, a local fintech company, is one of the
firms shifting focus.
The company states that focusing on customer experience and providing basic financial education has enabled it to retain clients and grow steadily.
While most lenders focus on numbers and fast approvals, Demulla has added
something different, listening to its customers and trying to teach them how to
manage their finances.
“It's not just about giving someone a loan,”
said Patricia Nalyanya, who handles customer experience at Demulla.
“It’s about helping them understand how to use that loan wisely and build a
better future.”
For many years, borrowers, particularly those operating small businesses, have often complained about confusing loan terms, inadequate
communication, and hidden fees.
These issues made people hesitant to borrow, and for those who did, many ended
up defaulting. With mobile lending now giving people more options, lenders are
under pressure to do better.
At Demulla, loan officers are trained not just
to assess creditworthiness but to talk to customers, understand their
challenges, and guide them.
The company also runs introductory training sessions on topics like budgeting,
managing cash flow, and borrowing responsibly.
These lessons aren’t extra, they’re part of the lending process.
One of the most significant changes is related to transparency.
Customers are told in advance what they’ll pay, when, and how
much.
There are no surprise charges later.
Demulla also utilises simple mobile tools, including USSD codes, allowing customers without smartphones to check balances, seek assistance, or report issues.
Analysts say this approach, combining honest
communication with basic financial education, helps reduce defaults. Customers
who understand their loan terms are more likely to repay on time and borrow
again. It also builds trust, which leads to more referrals and long-term
loyalty.
“Educated borrowers tend to be more
responsible,” said Wycliffe Odhiambo, a Nairobi-based financial consultant.
“And when customers feel respected, they’re less likely to walk away.”
As competition in Kenya’s lending space intensifies, more lenders may adopt a similar strategy, maintaining transparency, listening more closely, and treating customers as long-term partners, rather than just numbers.
