Nairobi, July 14 -- As efforts to strengthen supervision of digital lending continue, it is imperative to reflect on the next phase of financial inclusion. In the past year, mobile lenders disbursed over Sh133 billion in microloans to more than 7.5 million borrowers.

Yet default rates on advances under Sh1,000 exceeded 80 percent, with one in six people falling into complete default.

While instant credit has undeniably expanded financial inclusion, questions remain about whether current safeguards adequately protect borrowers from over-indebtedness.

Digital lending was designed to support small businesses and bridge irregular income streams.

Instead, a significant portion is being directed towards everyday household expenses and non-e...