Predatory lending is still deeply embedded in the country’s financial ecosystem, and one of its most notorious and persistent offenders is Mwananchi Credit Limited, a company that has built its business on exploiting desperate borrowers through high-interest, short-term loans that often leave them worse off than before.
The microfinance company, known for aggressively marketing quick loans to civil servants and salaried workers, has repeatedly come under fire for issuing high-interest loans that spiral into crippling debt.
This latest case adds to a long list of complaints as a borrower who took out a loan now finds themselves being asked to repay nearly double the original amount.
“Hi Nyakundi. I would like you to focus on the expensive loans which are extortionist in nature from some of these microfinances. I took a loan of 222k, three months down the line I’m told to pay back 380k. Kwani what rates do they use to calculate their actual amount, surely? Watu wajue so that they don’t fall into the same trap that has befallen me,” a source wrote to us on Thursday.
It’s the same old script that many Kenyans have seen before with Mwananchi Credit.
Hidden charges, ruthless collection methods and astronomical repayment demands.
But this borrower’s ordeal comes at a time when the company itself is showing signs of internal collapse.
Recent reports suggest the lender is grappling with serious internal turmoil, including failure to pay staff salaries, mass layoffs affecting over 200 workers and widespread complaints of unpaid commissions, all pointing to a company in financial distress even as it continues to demand exorbitant repayments from its struggling clients.
Insiders allege that salaries for the month of March remain unpaid, despite the company’s promises, while Direct Sales Representatives (DSRs) are reportedly yet to receive their February retainers.
Financial Trouble: Workers Sound Alarm as Struggling Mwananchi Credit Fails to Meet Payroll
The abrupt dismissal of the entire check-off loan sales team, without warning or compensation, has only fuelled speculation that the company is attempting to dodge its obligations to staff as it faces mounting financial pressure.
Many former employees believe the layoffs are a calculated move to avoid paying pending commissions and accrued benefits, especially for those who were already handling large volumes of loan disbursements under Mwananchi’s aggressive lending model.
Mass Layoffs at Mwananchi Credit Spark Outrage as Workers Claim Unpaid Dues
In the absence of official communication from management, affected staff have been left in limbo, unsure of whether their dues will ever be settled.
These internal failings are not just signs of a struggling company but speak to a culture of impunity that extends from the way Mwananchi treats its employees to how it interacts with borrowers.
If a financial institution cannot honour its payroll, how can it be trusted to manage the finances of thousands of Kenyans in vulnerable economic positions?
Meanwhile, government regulators and oversight bodies remain largely silent, even as more individuals and former staff speak out about their experiences.
The lack of enforcement or transparency around microfinance practices in Kenya continues to enable companies like Mwananchi to thrive at the expense of both workers and borrowers.
What makes this all the more troubling is that despite its ongoing troubles, Mwananchi Credit continues to operate as if business is usual while advertising new loan products, onboarding clients, and collecting repayments at interest rates that border on extortion.
Without stronger regulation and intervention, the situation risks spiralling further, with more Kenyans trapped in cycles of debt while the company itself struggles to stay afloat.
