Written By Lisa Murimi
Derrick Ouma, a 35-year-old trader selling second-hand jackets (mitumba) in Nairobi’s Kasarani-Mwiki, exemplifies the challenges faced by many small-scale traders in Kenya.Â
Ouma has seen a noticeable drop in foot traffic to his street-side stall, as customers increasingly demand lower prices, forcing him to absorb occasional losses.
For him, loans have become essential to sustain his business and support his family during slow sales periods.
Similarly, Sarah, a single mother operating a small shop in Njiru, turns to credit to bridge gaps in
her household finances.
Her children’s education expenses and basic needs often arise before her business profits can cover them, leaving her reliant on loans to make ends meet.
Such reliance on credit is not isolated. Many Kenyan households are facing economic pressures due to rising taxes, high unemployment, and increased costs of living.
Reports indicate a significant rise in loan uptake among households as people turn to credit to navigate financial uncertainties and fund essential expenses.
As Kenya’s economic strain deepens, the borrowing trend is expected to continue, raising concerns over financial sustainability among small traders and households alike.
