A Kenyan small-business owner has turned to social media seeking advice on how to escape a debt burden of more than Sh2 million,
In a post shared on the Tujengane Business Ideas Plug Facebook group, the unidentified business owner said he accumulated loans of about Sh3.5 million from around 2020, with the outstanding balance now standing at approximately Sh2.2 million.
“I have a loan balance of 2.2M. I took loans carelessly around 2020 totaling about 3.5M. It’s draining me. How did you guys do to get out of this?” he wrote.
The business owner said the debt has become increasingly difficult to manage despite his business generating between Sh100,000 and Sh150,000 in profit in a good month.
The individual listed several outstanding facilities, including a KCB loan of Sh720,000, a Loop loan of Sh365,000, a KCB credit card balance of Sh147,000, Timiza at Sh100,000, a Safaricom Till loan of Sh100,000, M-Shwari at Sh27,000, KCB Mobi at Sh80,000, Equity at Sh380,000, a salary advance of Sh80,000 and Sh350,000 owed to a friend.
The business owner also disclosed significant monthly household and business expenses he claimed to be eating up his monthly profit.
He revealed school fees for his two children cost about Sh60,000, while home rent takes another Sh15,000 and shop rent Sh30,000.
This means that in a month when the business makes Sh100,000 in profit, the three listed expenses alone consume the entire amount and leave little or nothing to service the outstanding debts.
“I don’t have stock to make payments with as I take products, sell and pay my supplier,” the individual said, while asking other group members how they had managed to get out of similar debt situations.
The post attracted advice from several Facebook users, with many encouraging him to reduce expenses and create a structured debt repayment plan.
Cut expenses before looking for more money
One of the contributors, Mc Yente, advised the business owner to make drastic reductions in household expenses, particularly school fees and housing costs.
The contributor suggested moving the children to a more affordable school and relocating to a cheaper neighbourhood, arguing that the immediate priority should be restoring financial stability rather than maintaining a lifestyle that the current income cannot sustainably support.
Yente also warned against the belief that earning more money alone would solve the problem, further advising him to stop the cycle of borrowing and focus on living within available means while rebuilding the business.
“Don’t care what people will say,” the contributor advised, stressing that financial recovery may require difficult lifestyle changes.
Avoid taking a loan to pay another loan
Another contributor, Jmo Kihoro, questioned where the borrowed money had gone, given that the business owner reportedly obtained goods from suppliers, sold them and then used the proceeds to pay suppliers.
The contributor suggested that the business owner examine personal spending and reduce fixed expenses, particularly school fees.
The savings, he argued, could then be redirected towards debt repayment and rebuilding business stock.
Kihoro also advised the entrepreneur to grow working capital so that the business would no longer operate under constant pressure to make immediate loan payments.
He warned him against taking additional loans to service existing ones.
“Don’t take a loan to pay another loan. Unless it’s an entity that wants to consolidate all these debts, buy them off, and you are given one facility with manageable repayment,” he advised.
The debt snowball approach
Another contributor, identified as Assegai2026, recommended the so-called debt snowball method.
Under the approach, a debtor lists all outstanding debts from the smallest to the largest and concentrates extra repayment money on the smallest balance while continuing to meet minimum obligations on the others.
Once the smallest debt is cleared, the money that had been going towards it is redirected to the next debt.
The process is repeated until the largest loan is eventually tackled.
Assegai2026 also recommended reducing school fees and using the resulting savings to accelerate debt repayment.
He further advised the business owner to first examine the behaviour that contributed to the accumulation of debt in the first place.
“Debt accumulation is a character deficiency. Try to search the problem in your behaviour that pushes you to accumulate debt. Are you a people pleaser, trying to please everyone but neglecting yourself? Address that first so as to achieve long-term freedom,” he advised.
Restructuring could provide breathing space
Kency Kamotho, another contributor, shared a personal experience of borrowing that eventually became difficult to manage.
The contributor recalled reaching a point where a loan that initially appeared affordable began consuming a significant portion of available cash flow, eventually forcing her to approach a bank manager to request restructuring.
“That experience taught me something important: debt is not dangerous when you take it. It becomes dangerous when it starts controlling your cash flow. The moment your income arrives and most of it is already committed to loan repayments, you begin working for the lender instead of yourself,” she wrote.
She recommended identifying high-cost debts, including credit cards, salary advances and short-term digital loans, and considering discussions with banks and other lenders about restructuring.
“The first step is to stop taking new loans completely. No more borrowing from one lender to pay another. That cycle is what traps many people for years. The second step is to identify the most expensive debts such as credit cards, salary advances, Timiza, M-Shwari and similar facilities. These are usually the ones draining cash the fastest and should be cleared as quickly as possible,” she advised.
“I would also encourage this person to speak with the banks. There is no shame in asking for restructuring. In fact, recognizing a problem early is a sign of financial maturity. A lower monthly repayment can create breathing room and allow the business to stabilize,” she added.
Kamotho further advised other borrowers to avoid taking loans without a solid plan.
“Debt is a tool. Used wisely, it can help you grow. Used carelessly, it can become a trap. If you find yourself in a hole, the first rule is simple: stop digging. Then create a plan, cut unnecessary expenses, increase income where possible, and tackle the debt patiently. The journey out may not take a month or a year. It may take several years. But financial freedom is built one disciplined decision at a time,’’ she added.
Also Read: Good debt vs bad debt: The simple guide to smarter borrowing
