Civil servants and other salaried employees are once again raising alarm over questionable deductions and repayment terms from microfinance institutions, with African Capital Limited emerging at the center of the latest concerns.
Established in 2004, African Capital Limited offers loans to civil servants, teachers, and employees of reputable organizations, promoting itself as a flexible, people-centered lender.
However, a number of individuals who spoke to us allege that their experiences have not always aligned with the company’s public image.
Some employees claim that relatively small loans appear to increase in total repayment amounts beyond what they recall from their original agreements, with balances that, according to them, seem to grow unexpectedly over time.
Several civil servants further allege that even after making multiple installments, they have noticed their outstanding balances rising, while also observing more than one deduction per month on their payslips.
They say the reconciliation of these deductions is not always clear to them.
Questions have been raised by some over whether there might be gaps in coordination between government payroll departments and African Capital Limited, as certain automatic deductions reportedly do not appear to match the amounts these employees believe have been credited to the lender.
Those making these claims say they are uncertain whether such situations are the result of administrative errors, system delays, or other arrangements, and they have voiced concerns that such opacity could be causing unnecessary financial strain.
“Hi Cyprian. I have an issue with these microfinances and the government ministries. I took a small loan of Ksh 20,000 from African Capital Limited in November 2024 and I wanted to repay it this August. I went to get the statement, and to my surprise, it shows I should pay Ksh 40,900, and I have only paid the loan 3 installments and my payslip has 11 deductions for the loan. The government deducts civil servants’ money and they fail to remit to the loan institutions? Or it’s another agreement between some officers to benefit from it?”
