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Kenyan fintech startup Pezesha is running financial education sessions in the town of Embu in a bid to cut down on the high default rates amongst borrowers.

Pezesha, which secured a round of funding in August, offers a value chain financial marketplace by financially educating borrowers and taking them through a credit scoring process before they qualify for a loan.

The startup has now launched its official curriculum – Pezesha Academy – in Embu in collaboration with Akili Group, an institution focused on value addition and training for farmers. The partnership will empower 60,000 farmers in Embu, with the training beginning with a two-day course on the core components of financial education.

While the widespread adoption of mobile money is clearly having a positive impact, the elimination of traditional barriers to loans means many people are accessing credit without truly knowing what they are getting into. Almost three million people have been negatively listed on Kenya’s credit bureau in the last three years.

“As such, at Pezesha we believe it is our responsibility to couple our provision of easy access to finance with the requisite know-how on how to use it well. And beyond that, provide education on how to manage credit thereafter, enabling the borrower to access better and better loan terms, climbing the ladder to financial freedom in a responsible manner,” said Adam Millest, communications associate at Pezesha.

In a curriculum that has been modelled on data gathered from Pezesha’s interactions with over 20,000 individuals, participants were taken through modules on credit scores, budgeting, saving and investments and effective debt management.

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