A Kenyan man earning Ksh55,000 per month somehow managed to rack up a staggering Ksh1,071,000 in debt—spread across 52 active digital loan apps. Yes, fifty-two! If there was an award for borrowing, this guy would be a gold medalist.
The shocking case was revealed by Kevin Mutiso, the Chairman of the Digital Financial Services Association of Kenya (DFSAK), during an interview on NTV’s Fixing the Nation. He explained how flawed government policies are fueling over-indebtedness and leaving borrowers drowning in loans they can’t possibly repay.
How Did This Happen?
In December 2024, DFSAK conducted an experiment, inviting individuals who were struggling with overwhelming debt to come forward. That’s when they met this “super borrower”, whose loan obligations had skyrocketed to 20 times his salary.
“We ran an experiment and found one man earning Ksh55,000 who had borrowed Ksh1,071,000 from 52 loan apps,” Mutiso said.
The issue? Digital lenders can no longer access shared borrower data from the Credit Reference Bureau (CRB).
Previously, lenders would submit customer information to CRBs, allowing them to check whether someone already had multiple loans. But when non-licensed lenders were removed from the system, borrowers gained the ability to take loans from multiple apps simultaneously, without lenders being aware of their existing debts.
The result? Cases like this one—where someone is borrowing from one app to pay off another, stuck in a never-ending cycle of debt.
Kenya’s Digital Loan Addiction
Kenyans love digital loans—maybe a little too much.
According to DFSAK data:
Kenyans borrow Ksh500 million every single day from digital lenders.
8 million people take out loans from digital apps every month.
 Loan defaults have skyrocketed, forcing some lenders to write off unpaid loans.
A report by Financial Sector Deepening Kenya (FSD Kenya) also showed that:
More men default on loans than women. In 2023, 604,539 men were negatively listed on CRBs compared to 328,962 women.
 The average loan amount for defaulters was Ksh30,560.
With Kenya’s tough economic times, it’s clear that many people are borrowing just to survive—but for some, it’s becoming a dangerous habit.
The Government’s Role & The Way Forward
Seeing the rise in over-indebtedness, DFSAK is now pushing for a government-led solution to centralize borrower data.
Mutiso suggested that all lenders report to the same credit bureau, making it easier to track multiple loans and prevent reckless borrowing.
Additionally, DFSAK is working on a loan consolidation system, where borrowers can:
1. See all their loans in one place.
2. Have their debts combined into one structured repayment plan.
3. Avoid taking on new loans just to pay off existing ones.
How to Borrow Responsibly
Mutiso advised Kenyans to rethink how they use digital loans:
🚫 Don’t borrow to consume—borrow to invest. Use loans to grow your business, not to buy fast food or fund weekend plans.
💰 Check the total cost of borrowing—interest rates, fees, penalties, and other hidden charges.
🎲 Avoid gambling with borrowed money. Shockingly, Kenya spends Ksh10 million per hour on betting—a major trap for young borrowers under 24.
The case of the man with 52 loans is extreme, but it’s also a wake-up call. Digital loans can be a lifeline, but without regulation and responsible borrowing, they can also become a financial disaster.
If you must borrow, be smart about it. And if you find yourself scrolling through dozens of loan apps, maybe it’s time to take a step back and rethink your financial habits.
