5 Ways to Get Out of Debt Quickly

To get out of debt in the Kenyan landscape requires a mix of discipline and savvy maneuvering around high-interest digital lenders. Based on your points, here is a breakdown of how to execute these five strategies effectively:

1. Slash Expenses to Create a “Debt Buffer”

The first step is a radical audit of your monthly spending. Distinguish between “Needs” (rent, basic food) and “Wants” (entertainment, luxury dining).

• Action: Use the M-PESA App’s “Statements” feature to track exactly where your money goes. Redirect every shilling saved from “wants” directly into your smallest loan to build momentum.

2. Borrow Against Your Current Reality, Not Your Dreams

Many Kenyans fall into the trap of borrowing because they expect a “deal to go through” or a bonus next month. If that money doesn’t materialize, you are stuck.

• Action: Only take credit that your guaranteed net salary or stable business profit can cover. If you use digital apps like Tala or Branch, ensure the repayment amount is already sitting in your account before the due date.

3. Reject the “Lifestyle Inflation” Trap 

Peer pressure is a major driver of debt in urban Kenya. Buying a car or the latest iPhone on credit just to “fit in” is a recipe for financial ruin.

• Action: Practice the 30-day rule: if you want a non-essential item, wait 30 days. Usually, the urge to buy it passes, saving you from a high-interest loan.

4. Prioritize Timely Repayments to Avoid Penalties 

Defaulting by even a day on mobile loans can lead to hefty “roll-over” fees or a negative listing on the Credit Reference Bureau (CRB).

• Action: Set up a Standing Order via your bank or the NCBA M-Shwari platform to automate repayments immediately after your salary hits. This removes the temptation to spend the money elsewhere.

5. Plug the Leak or Liquidate Assets

Borrowing from one app to pay another (the “robbing Peter to pay Paul” method) creates a debt spiral. If your business is failing, more debt won’t save it; fixing the operations will.

• Action: If your debt-to-income ratio is too high, consider selling non-performing assets (e.g., an idle car or electronics). It’s better to walk for a few months than to have your household items auctioned. You can list items for quick sale on platforms like Jiji Kenya.