A more sustainable shift is to move away from borrowing and toward an investment-led strategy that gives you flexibility and lowers stress.
I work in Nairobi, and I have a big money problem. My net pay after statutory deductions is Sh203,000. I have loans as follows;
1) Bank A Loan of Sh3million, which was for a 90-month term. The monthly deduction for this loan is Sh54,000. As of February 2026, I have paid the loan for 43 months and the balance stands at approximately Sh2.1 million. The remaining term for the loan is 47 months.
2) Bank B Loan of Sh1.3 million, which was for a 120-month term. The monthly deduction for this loan is Sh24,000. As of February 2026, I have paid the loan for 18 months and the balance stands at approximately Sh1.2 million. The remaining term for the loan is 102 months.
3) Sacco loans as follows;
I) Sh150,000 loan, which has deductions of Sh7,000 per month and has a balance of Sh50,000 and has 8 months left.
ii) Sh500,000 loan, which has deductions of Sh13,000 per month and has a balance of Sh466,000 and 56 months left.
My total loan obligations are about Sh98,000 per month. I am also a member of a Sacco where I deposit Sh10,000 per month through my payslip. Currently, I have deposits of Sh360,000 and Sh31,000 in share capital. After deductions, I am left with about Sh95,000 for my living expenses.
I am married and my young one recently started schooling. I live in my own house hence I do not have any rent obligations. I also own a small car for my commuting needs.
a) My house requires about Sh1 million to complete it.
b) I want to get about Sh3 million for investments into Sacco share capital and Special Funds.
c) From time to time I get the urge to buy a bigger car.
d) I am due for a pay rise of about Sh30,000 - 40,000 from my employer later in the year.
Here is my dilemma; Do I consolidate my loans into one loan, or do I continue paying them individually, especially the bank loans?
My payslip will be able to accommodate a new loan of about Sh3 million later in the year, do I take it as a new loan or do I consolidate it with the current bank loans? Sh3 million loan will attract about Sh50,000 in monthly deductions.
- Maxwell
Alex Kibebe is the founder of Rubiani Wealth Management Ltd and an investment consultant and business development coach.
From what you have shared, you have largely relied on debt to fund your financial goals. While this approach has helped you acquire assets and meet key obligations, it is also the source of the financial pressure you are now experiencing.
At this stage of your journey, a more sustainable shift is to move away from borrowing and toward an investment-led strategy that gives you flexibility, lowers stress, and allows your money to work for you.
Your dilemma is not really about whether to consolidate your loans or take a new one. The more important consideration is whether adding or reshuffling debt will improve your financial position over the next few years. Although your payslip may accommodate a new loan later in the year, your current loan obligations already take up close to half of your net pay.
To address your situation, begin by clearly defining and prioritising your financial goals. From what you have shared, your goals include building an emergency and school fees buffer, completing your house, getting out of debt, and later upgrading your car and growing investments. Once these priorities are clear, your financial decisions become more deliberate and disciplined.
Instead of taking on a new loan, begin by setting up an investment account dedicated to short- and medium-term goals.
Start small with a monthly contribution of Sh5,000 so the habit is easy to maintain. A Money Market Fund or a Bond Fund would be appropriate as these provide liquidity, are low risk and have competitive returns – while allowing access to your money when needed.
Take time to review and identify a reputable fund manager with a good performance track record to invest with.
As the year progresses, channel your anticipated pay rise of Sh30,000–40,000 into the investment account and once the smaller Sacco loan is cleared, redirect the freed Sh7,000 into the same fund.
This will bring your total monthly investment to about Sh42,000 without increasing financial pressure. At this saving rate, you will accumulate an investment fund of roughly Sh300,000 by the middle of next year which can serve as a buffer for emergencies and to cover for your child’s school fees.
With this cushion in place, continue saving for the next 12 to 18 months with the aim of raising approximately Sh750,000 to put towards completing your house. Once this amount is set aside, use your ongoing monthly savings of about Sh42,000 over a further three to six months to fund any shortfalls in the house completion works.
Once your house is complete, redirect your monthly savings toward accelerating repayment of the Bank A loan.
At Sh42,000 per month, you can clear it in roughly a year, releasing Sh54,000 that was previously tied to loan repayments.
This is where momentum builds. By combining your savings and the freed-up loan repayment, you will have close to Sh100,000 per month to tackle the Bank B and remaining Sacco loans.
Within another one and a half years, you can realistically be debt-free. From that point, your savings can be redirected fully toward investments, growing your Sacco share capital and eventually a car upgrade—without the pressure and cost of borrowing.
Shifting from a debt-driven approach to an investment-led strategy will enable you to achieve your goals faster with less strain and far greater peace of mind.
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