Prior to 2020, digital lending witnessed an unprecedented rise and growth in Kenya. According to a 2019 FSD report, the boom was fuelled by widespread use of mobile phones, high demand for credit and a lax regulatory environment. Digital lenders fall into two main categories: mobile banking loans(i.e. loans by licensed banks such as M-Shwari) and digital loans (i.e. loans granted by unregulated firms like Tala and Branch). The regulatory environment made it very easy for unregulated providers to enter the market. By 2020, Kenya had over 120 digital lending platforms.