Do Not Borrow Money to Eat This Festive Season

Over Ksh 37 billion fake currency seized on May 4, 2021.

As the festive season fast approaches, the spending appetite for most Kenyans is expected to be on the rise, and leave some in debt going into the new year.

However, you are being encouraged to limit your spending and live within your means during this festive season to avoid unnecessary debts

According to Marshal Nyagor an economic analyst from Zimele, most of the debt accrued by Kenyans on digital platforms is as a result if poor planning.

Inside Thika Road Mall along Thika Superhighway.
Inside Thika Road Mall along Thika Superhighway.

“In most cases you’ll find that most of this money borrowed was not well utilized, some people even borrow just to go and have fun and maybe just to go and afford some expensive hotel and holiday in Mombasa. Those are the kind of things that’s are discretional, that you don’t need to borrow for that,” Marshal noted.

This coming on the back drop of a growing credit consumption especially on digital platforms that has led to over 4 million people being listed negatively by the Credit Reference Bureaus (CRBs).

Nyangor’s sentiments were also echoed by the Digital Lenders Association of Kenya chairperson Kelvin Mutiso during an interview with

According to Mutiso, Kenyans should borrow money to invest in projects that could potentially generate revenue for them to avoid getting into debts that they will struggle to repay and in the end ruin their credit score.

“Only take money when the money you’re borrowing is going to make money for you,” Kevin noted during an interview.

“A taxi for example that needs to go from Westland to town and they have been promised 1000 shillings if they take someone to town. They should download an app borrow 700 shillings put enough fuel of 700 shillings into the car take the person down to town get paid 1000 shillings repay the 700 shillings keep the 300 shillings as profit," he insisted.

Further, Kenyans have been urged to stop borrowing to pay as in only worsens their debt situation and exposes them to a debt trap.

“I understand the problem borrowing from John to pay Peter and Peter to pay who, that happens a lot but it, means that that person is now debt trapped. You are always running from one person to pay another and the reality is that it just worsens the situation because once you borrow person A and pay B , it means you also have to borrow from another one to pay them so you’re in a debt," Marshal added.

Noting that the only way one can avoid such vicious cycles is by working out how to increase their income and reduce borrowing. 

According to a recent stud, recurrent expenditure is among key reasons why Kenyans turn to digital lenders for quick credit.

A holiday home in Nanyuki available of the Airbnb application.
A holiday home in Nanyuki available on the Airbnb application.