Are debts bad? Is it wrong to be in debts? What level of debts is not condoned?

Let’s face it, Kenya is a borrowing nation. And the habit of borrowing didn’t just begin from our national leaders but it began from the Kenyans themselves. Our leaders are a reflection of who we are. Borrowing from China to pay Eurobond. Borrowing from World Bank to pay China. It’s the same situation with many Kenyans, borrowing from Peter to pay Paul.

It’s not all said, is debt bad? Debt could be good or bad, but it depends on the purpose of the debt. Is it meant to spend or to invest? A debt is considered bad if it is used to spend, a debt is considered good if it is used to invest. Remember poor people spend money, middle class save money, and the rich people multiply money. But again the rich people have money but wealthy people have time. Richness is short-term but wealth is long-term. A person who has just taken a loan to spend is rich but one who has taken the loan to invest is wealthy.

It’s always about three things, money, debts and investments. Today we are talking about debts. We’re talking about you who is in a bad debt. You have many debts or you want to avoid many debts.

Today many Kenyans can access loans, Sacco’s, money lending applications and even Shylocks. It’s the first time in history where people can access loans this fast.

But again what do you do when the Economy is bad? When there is a pandemic? When there is a recession? Yet you have loans to finance? How do you manage the debts?

To most people, Sacco loan is always the easiest option. Because they save and can also borrow. So if you’re wondering how to finance your Sacco loan, these are the options…

Consolidate all your loans. The financial institution offers to buy all your loans you have with other financial institutions. They consolidate them into one huge loan. The consolidated loans include the bank loan, Sacco loan, mobile lending app loan, and even Shylock’s loan (try your luck). Let’s assume your loan balance is Sh 600,000. And your other loans are totalling to Sh 200,000, this is the exact figure you borrow from your Sacco. They will use these money to buy off the other loans. They will also extend your repayment period to 60 months. You now only have the Sacco to deal with. Remember, Sacco’s offer the best interest rate in the market.

Restructure your loan. Here, your loan balance becomes a new loan on new terms, i.e new interest rate and new repayment period. Thus option gives you breathing room.

Now, not all people are into Sacco loans. Others are just into debts from one person to another which are amounting to huge sums. With all this we have Corona. You have mortgage to look into, children to support, home to build, job to secure, or business to grow.

For personal debt management, to avoid getting into more bad debts, do an emergency budget, know who and how much you owe them (make a list of all the debts- who and how much), decide which debts to pay off first, choose a repayment strategy (remember this could not be the best time to start a business).

Remember, debt is not considered either good or bad. It’s normal. The way you spend your loan makes it either good or bad. Borrowing money to spend always puts in financial uncertainty and worry. Owing money costs you money in form of interest. By taking control of your debts you get back to your financial freedom first.

It’s time you make your loans work for you rather than just for the lender.


  1. Peter kinyanjui

    Thats true,but through this transaction ,, of loans is it good to ask for a loan when you are in a poor background.


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