Abstract:
The purpose of the study was to establish the drivers that influence digital credit among the
residents of Nyeri municipality Kenya. The study objectives were to determine how access to
information influences digital credit and how ease of access to loans influences digital credit. To
support the study objectives, neoclassical economics theory and behavioral economics theories
were used. The target population was 46969 and the sample size comprised of 383 individuals who
were 18 years of age. A pilot study was conducted in Nyahururu town where ten questionnaires
were administered. Purposive sampling was utilized to identify respondents. A descriptive crosssectional
survey
was
undertaken.
The
primary
data
were
collected
using
a
structured
questionnaire.
Data
were
analyzed
using
descriptive
and
inferential
statistics.
The
findings
suggest
that
ease
of
access
to
digital
credit has created flexibility in borrowing with a correlation of 0.689. This has
eliminated costs such as travel and documentation. Additionally, digital credit has enabled
borrowers to access credit they could not access through traditional banking with a correlation of
0.763. Respondents also noted that digital credit has streamlined their repayment discipline with a
correlation of 0.653, making borrowing smoother. To improve digital credit use in Nyeri
municipality, lenders should work to enhance borrower education. This will ensure that borrowers
understand the costs associated with borrowing on digital platforms. Lenders should also consider
providing flexible repayment options and ensuring borrowers have access to support services when
needed. Further studies on digital credit in Kenya can build on this study by exploring the influence
of other factors such as age, education, and income level on digital credit use. Additionally, studies
can focus on the impact of digital credit on household financial stability and the broader economy.
