A research conducted by Financial Sector Deepening (FSD) Kenya has revealed that 2 out of 3 Kenyans skip meals in order to save money to pay debts and loans.
According to the research, most of the debts include; digital loans, shylocks and loans from banks.
FSD Kenya which is a programme that advocates for the development of financial markets noted in the report of their research that a good number of Kenyans were suffering from financial constraints.
51 per cent of the people included in the research had at one point sold their assets, borrowed from other credit providers or reduced their expenses in order to pay for loans. 24 per cent of the interviewees also had to part with more than half of their salary in order to pay for the loans.
"Sixty-seven per cent of borrowers experienced at least two symptoms of debt stress, including default, being over-leveraged and selling assets or borrowing or cutting expenditure to repay loans,” The FSD report read as quoted by the Standard Digital.
The report also noted that a section of Kenyans was opting for loans provided by digital platforms and mobile money lenders.
“Digital borrowing is rising fast, driving up formal borrowing rates. Nine per cent of Kenyans currently have a mobile banking loan and seven per cent currently have a loan through digital apps," the report revealed.
It also showed that Kenyans were incapable of investing in the future due to the fact that they are not presently financially stable.