Many Kenyans are finding themselves caught in difficult financial situations, often made worse by unclear or unfair lending practices. One recent story has drawn wide attention after a borrower reached out to blogger Cyprian Nyakundi for help. The customer had taken a loan of Ksh 205,000 from Momentum Credit in 2020 and started paying it off faithfully.
They made payments month after month, expecting the balance to reduce as time went by. However, to their shock, nearly two years later, the amount they owed had not changed. Despite paying what they believed to be far more than what they had borrowed, the loan balance remained at Ksh 205,000.
The borrower explained that by January 2023, they had already paid close to Ksh 600,000 in total, with M-PESA statements and receipts to back it up.
Between 2021 and 2022 alone, they paid about Ksh 521,000, yet every statement from Momentum Credit still showed the same balance. Whenever they reached out to the company, the response was always the same keep paying as per the statement. This left them feeling helpless and trapped, unsure of when or how the debt would ever end. Out of frustration, the individual turned to Cyprian Nyakundi, asking him to expose the company so that other people would not fall into the same situation.
Nyakundi, known for using his platform to expose wrongdoing and amplify public concerns, shared the story with his large online audience. Many people responded, saying they too had faced similar experiences with lenders. Some advised the borrower to take the matter to court, while others said they should report it to the Central Bank of Kenya. One user even noted that interest should never exceed the original loan, suggesting that the company could be breaking lending laws.
When people looked into Momentum Credit, they found this was not an isolated issue. Online platforms such as Trustpilot and Facebook are filled with complaints from customers who accuse the company of applying hidden fees, manipulating loan statements, and failing to reduce balances despite ongoing payments.
In one court case, Gitau versus Momentum Credit, the court dealt with concerns about loan handling, while in another, the company was faulted for failing to prove that a loan had even been issued. These incidents point to deeper issues within the lending system, especially among private credit companies that operate with minimal oversight.
Nyakundi’s coverage called the matter a growing scandal, highlighting how ordinary Kenyans are being taken advantage of. Some borrowers said they took loans to buy vehicles or boost their businesses but ended up losing everything after defaulting due to inflated balances. Even worse, many claim that once a person misses a few payments, penalties and interest pile up so fast that repayment becomes almost impossible.
Momentum Credit presents itself publicly as a reliable non-banking financial institution that supports small businesses and individuals. On its website, the company promises fast solutions, flexible repayment plans, and personal attention to clients. However, the experiences shared online tell a different story. Many customers report poor communication, lack of transparency, and high interest rates that make repayment unrealistic.
Stories like this one reveal the hidden struggles behind Kenya’s expanding credit market.
Cases of exploitation are becoming harder to ignore. Regulators like the Central Bank have the power to act, but enforcement remains weak. Borrowers are often left on their own, forced to rely on social media or bloggers like Nyakundi to get justice.
For those already stuck in similar traps, documenting every transaction and speaking out may be the only way to protect themselves and warn others. It’s a reminder that while loans can provide short-term relief, without strong regulation and transparency, they can easily turn into a long-term burden that destroys lives instead of improving them.
