Safaricom Chief Executive Officer (CEO) Peter Ndegwa has announced that the telecommunications firm is planning to remove four million customers who have been blacklisted and listed on the Credit Reference Bureau (CRB) in a move likely to hit the mobile operator as most borrowers are likely to get away with loans.

The suspension of digital lenders from CRB reporting had seen a massive decline in the volumes of loans they issued. According to the industry lobby - the Digital Lenders Association of Kenya (DLAK) - the value of loans issued each month fell by over 50% to Ksh2 billion.

Harnessing digitalization to develop a citizen-centric financial system to accelerate financing for the SDGs requires the development of digital financing ecosystems

Switch and Save enables customers unable to reach favourable terms with their lenders to transfer the credit facility to Mwananchi Credit.

Existing customers servicing their loans will get rebates on repayment for one month, meaning they won’t pay interest for at least one month.

Yet the reality is that it may be the approach being taken by Sub-Saharan Africa’s PE investors that is causing them such poor returns.