Welcome to the land of “Fuliza till you drop” and “Loan apps know me by my middle name.” If you’re a Gen Z in Kenya, chances are you’ve experienced the sweet temptation of quick loans and mobile money credit. But let’s be real—sometimes these ‘easy’ solutions turn into long-term stress.
Here’s a guide to navigating the tricky world of debt and, most importantly, how to break the cycle of bad debt that’s holding so many of us back.
- The Fuliza Trap: A Love-Hate Relationship
Let’s talk about the elephant in the room—Fuliza. It’s like that toxic friend who’s always there when you’re down, but they make sure you never fully recover. You’re stuck in a cycle where you pay just enough to borrow more, and it becomes impossible to escape.
Example: Meet Newton, a 24-year-old who started using Fuliza to cover small expenses like lunch. But soon enough, he was borrowing daily to manage bigger costs, and now, every time he gets paid, Fuliza takes its cut before he even gets to enjoy his money.
Solution: Create a “No Fuliza” Week Challenge
Start by giving yourself a “Fuliza Detox.” Challenge yourself to go a full week without borrowing anything. Instead of reaching for that Fuliza balance, plan your spending at the start of the week. You’ll realize that you actually don’t need to borrow for small things, and you can survive without the daily quick fixes.
- The Loan App Dance
How many loan apps are sitting quietly on your phone right now, waiting for you to hit “borrow”? Branch, Tala, Okash—the list is endless. It’s easy money, right? But when all these apps come knocking at the end of the month, they don’t ask nicely.
Example: Anita borrowed from three different apps to fund her online business, thinking she’d easily repay them with her profits. But delayed payments from clients left her juggling between apps, borrowing from one to pay the other. Before she knew it, her debt had tripled.
Solution: Try the “Loan Detox” Method
First, delete the apps. No, seriously. If they aren’t on your phone, they won’t tempt you. Second, start paying off the smallest debt first (a strategy called the Debt Snowball Method). This gives you quick wins and the motivation to tackle larger debts.
- Mkokoteni Mindset: Borrow for Growth, Not Survival
Borrowing isn’t all bad. Think of debt like a mkokoteni (handcart): If used wisely, it can help you carry heavy loads (like funding a business), but if you’re pushing it aimlessly, you’re just burning energy.
Example: Gift borrowed Ksh 50,000 from a SACCO to buy equipment for his side hustle, and now he’s making double that amount every month. His debt worked as a stepping stone, not a stumbling block.
Solution: Borrow with a Purpose
Before taking out any loan, ask yourself: “Is this going to help me grow?” Borrow to invest in something that can generate more income, not to cover short-term needs. Consider SACCO loans or regulated institutions over loan apps, which tend to have higher interest rates.
- Mchanga na Mpango (Small but Strategic Savings)
One of the biggest reasons we fall into bad debt is the lack of savings for emergencies. You can easily avoid short-term loans by setting up an emergency fund. Start small—it could be as little as Ksh 100 a week.
Example: Tracy started saving Ksh 500 every month in a SACCO, and when her laptop broke down, instead of going into debt, she used her savings to repair it.
Solution: Automate Your Savings
Set up automatic transfers to your savings account every month. The idea is to save without even thinking about it, and when that rainy day comes, you’ll be glad you did.
Breaking the Cycle
The reality is, debt isn’t going anywhere. But we have the power to control it. By cutting out unnecessary borrowing, setting up emergency savings, and borrowing for growth rather than survival, we can slowly but surely break the cycle of bad debt that so many of us in Gen Z are stuck in.
So, next time you think about hitting that “Fuliza” button, remember: Your future self is counting on you to make the smart choice today.
Final Takeaway
Debt can feel like a heavy burden, but with the right mindset and small, consistent actions, you can turn it into a tool for financial freedom. Let’s make smart money moves and break free from bad debt together!