Mobile Loans: Kenya Silent Killer
How Mobile Loan Collection Tactics Are Destroying Mental Health in Kenya
By Silas Kiriinya, Psychologist
Imagine waking up to dozens of missed calls from unknown numbers, your WhatsApp flooded with messages threatening to expose you as a defaulter, and your friends calling to ask why a loan app is demanding repayment on your behalf. This is the harsh reality for many Kenyans trapped in the unforgiving cycle of mobile loan debts.
Over the last few years, mobile loan apps have transformed Kenya's financial landscape, offering quick cash at the tap of a button. But behind the convenience lies a dark side—aggressive collection tactics that are pushing borrowers to the edge. Anxiety, depression, suicidal thoughts, and even tragic cases of suicide have become alarmingly common among those struggling with debt.
As a psychologist, I have seen firsthand the mental turmoil these tactics inflict. Let’s explore how mobile loan debt is silently crippling mental health and, more importantly, how to protect yourself.
How Mobile Loan Collection Tactics Affect Mental Health
1. Living in Constant Fear
For many borrowers, debt is a never-ending nightmare. Loan apps charge high interest rates, forcing people to borrow from one lender to repay another. The result? Chronic stress, sleepless nights, constant headaches, and even high blood pressure. One of my clients described it as "living in a prison without walls."
2. Harassment & Public Shaming
Some digital lenders take extreme measures—bombarding borrowers with threatening messages, calling their employers, or even exposing their financial struggles to family and friends. One borrower shared how his boss received a call from a loan app, accusing him of being a defaulter. The humiliation nearly cost him his job.
3. Depression and Suicidal Thoughts
The weight of debt can be unbearable. Many borrowers sink into depression, feeling like failures. Sadly, Kenya has witnessed heartbreaking cases of individuals taking their lives because they saw no way out. A young boda boda rider in Nairobi recently ended his life after being harassed by digital lenders—his crime? Failing to pay a Ksh 3,000 loan on time.
4. Fear of CRB Blacklisting
The fear of being blacklisted by the Credit Reference Bureau (CRB) is paralyzing. Many borrowers worry they will never qualify for loans again, lose job opportunities, or face financial ruin. This leads to severe anxiety, with people constantly dreading their financial future.
5. Broken Relationships
Debt does not just affect the borrower—it impacts families, friendships, and marriages. Arguments over money become common, and many borrowers isolate themselves out of guilt and embarrassment. One woman I counseled shared how her marriage nearly collapsed after a loan app sent threatening messages to her husband, accusing her of being a fraud.
How to Stay Mentally Strong Amidst Loan Stress
1. Reframe Your Mindset – You Are Not a Failure
Debt is a financial challenge, not a measure of your worth. Even the most successful entrepreneurs have struggled with debt. Instead of beating yourself up, focus on finding solutions.
2. Speak Up – You’re Not Alone
Shame makes many suffer in silence. Talk to someone you trust—a friend, family member, or even a spiritual leader. If the stress is too much, consider professional counseling. A problem shared is a problem halved.
3. Take Control – Set a Repayment Plan
Break your debt into manageable steps: ✔ Prioritize loans with the highest interest rates. ✔ Negotiate with lenders for repayment extensions. ✔ Avoid taking new loans to pay off old ones—it’s a trap!
4. Block Harassment Calls & Know Your Rights
Some lenders violate Kenya’s data protection laws. If you're facing harassment: ✔ Block their numbers. ✔ Report unethical lenders to the Central Bank of Kenya (CBK). ✔ Remember: No lender has the right to shame or threaten you!
5. Manage Stress Effectively
Debt is stressful, but stress management can help: ✔ Try breathing exercises to reduce anxiety. ✔ Keep a journal to clear your thoughts. ✔ Stay physically active—exercise helps reduce tension. ✔ Prayer and meditation can provide emotional comfort and hope.
6. Find Alternative Sources of Income
Debt feels less overwhelming when you have extra income. Consider: ✔ Freelancing, side hustles, or online gigs. ✔ Joining a savings group (Chama) for financial support. ✔ Learning budgeting skills to prevent future debt traps.
7. Seek Professional Help
If loan stress is affecting your daily life, reach out: ✔ Financial advisors can help restructure repayments. ✔ Mental health professionals can provide coping strategies.
You Are More Than Your Debt
Yes, mobile loans offer convenience, but they also come at a high psychological cost. No one should suffer in silence or feel like debt is a life sentence. There is always a way out!
If you or someone you know is struggling with debt-related stress or depression, don’t hesitate to seek help. Your financial struggles do not define you. You are more than your debt.
Have you or someone you know experienced mental distress due to mobile loan debt? Share your story in the comments below and let’s break the silence! Email us to schedule as session: amazoncounselingservices@gmail.com
Silas Kiriinya is an astute consultant psychologist and Executive Director of Amazon Counseling Center. He is also an affiliate of Workplace Option and a Global Clinician for Konterra Group in Africa.
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