Easy credit, tough lives: The curse of financial inclusion pushing Kenyans into debt and poverty

Pedestrians walk in Nairobi CBD on Saturday /ENOS TECHE

For a Nairobi employee earning about Sh45,000 a month, payday is less about building wealth than settling the bills that have accumulated over the previous four weeks.

Rent comes first. Then food, transport, electricity, school expenses and debt repayments. By the time everything is paid, there is often little left or nothing to set aside.

“Once my salary comes in, I repay the small loans, only to start borrowing again to get through the new month,” Bonface Mbithi (not his real name) tells the Star. He asked not to be identified because he does not want his employer or family discussing his finances.

"I can survive one month, maybe two, if I cut everything.”

His experience is shared, in different forms, by Kenyans across income groups.