Peer-to-peer lending, also known as P2P Lending, is a traditional banking alternative that connects verified borrowers seeking unsecured personal loans with investors looking to earn higher returns on their investments.

Verified borrowers are listed on the P2P lending platform where Investors get to see all their details before lending money to them. Investors have the option to lend small amounts to multiple borrowers to diversify their investments.

Peer to Peer Lending is already a hugely successful model for alternate financing across the globe. In Kenya, P2P Lending is gaining traction at a very fast pace and slowly becoming a very attractive investment option for investors. 

With increased red tapes and high interest rates from traditional banks, most Kenyans and people around the world are turning to alternative ways of borrowing. This explains why online Mpesa loans and P2P platforms are increasingly becoming popular.

While the central bank has in recent years formulated rules to regulate digital lenders, there are still no clear guidelines concerning P2P lending.