Banks have gone as far as offering day loans interest free on mobile. What other use can this money be put to except gambling? Who borrows money in the morning with confidence of repaying by midnight other than a gambler?

What does this portend for out banks? What percent of money is lent to mobile fellas? If an event was to happen that rendered Wanjikus unable to pay, would we see banks collapsing ala mortgage crisis? What kind of event would this be?

Its very scary. I think banks are getting careless. Wanjiku is doing a ponzi scheme via mobile lending from different offerers, at some point the cookie will crumble!

If you have been using airtime on credit (Okoa Jahazi) why should this scare you?

@eangaga. True the amounts are small but you are also exaggerating the rate. The total charge for the bank offering this service is 4.08% per month. And it only applies once you go past midnight.

I dont see how some people do not see mobile loans as a form of ponzi scheme. Njoroge borrows from A to repay B. Each time his loan gets bigger and bigger until eventually he will default.

I bet most people do not do any value creating work with this cash.

What % of total loans goes to mobile lending?
What % of this ends up in sport pesa et al?

Unless CBK puts a cap on how much a bank can give in mobile loans as a % of total lending, there is serious systemic risk in this ponzi scheme.

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Everyone thought corporate bonds were safe...... not any more.

Everyone thought mortgage crisis could never happen.....

Even the pros are as greedy as you are. They will chase high profits at expense of high risk because they get higher bonuses.

Would you borrow from a bank if you know outright the interest rate is 50% pa, of course not. I think therein lies the risk to the greater economy since i believe it is not sustainable in the long run.