Digital credit offers enormous promise to enhance provide a valued service to the mass market thus increasing financial inclusion, while also driving uptake and use of digitial financial services (DFS). However, with 2.7 million people already blacklisted on the credit reference bureau in Kenya, concerns are growing about current standards of regulation, customer protection and product design. In response, MicroSave conducted a brief study in Nairobi and Meru to examine the root causes of the alarming default rates on digital credit and propose recommendations for regulators/competition authorities, providers and other stakeholders. The research examined the process of applying for loans from different providers as well as conducting individual interviews with borrowers to understand their needs, aspirations, perceptions and behaviours.