Shylocks and other second-hand household good dealers are taking advantage of residents seeking money to pay fees for their children and other expenses.
Various local shylock outlets are either buying off household goods at throwaway prices or lending out money against them in large numbers hoping to reap maximum benefits later.
A second-hand furniture dealer based at Teachers Estate Simon Njoroge who operates Pep Traders, told this writer that he was receiving many offers from residents willing to sell their furniture because they need money to send their children to school or to buy books and uniform.
“The offers are very many and we are even forced to borrow money to invest. We hope to make a return when things cool off later in the year,” he said.
Njoroge added that most of his customers are middle class people who claim they overspent during Christmas on travelling and buying goodies for their families.
Another shylock, John Wachira based at Mawanga Business Centre who lends money against electronic goods likewise said that he had received many offers since the beginning of the year with most of his clients claiming they needed money urgently to pay fees for their children.
He said, “Business is normally very good for us during this period. We always keep money aside to cater for the big demand,” he said.
The minimum percentage of repayment for money lent on an item at the firm is 25 per cent while the maximum is 40 per cent. The items are sold off after the recipients fail to repay the money within the agreed period.
Electronics and furniture are among goods being sold or kept as guarantee for money lent.