I work as a sales assistant at a supermarket in Nairobi where I have been employed for the past 18 months. I earn a gross pay of Sh27,000 every month. A while back, I took a Sh100,000 microfinance loan to buy a dairy cow for my mum. Unfortunately, the cow died while calving. I have now been paying off this loan with monthly instalments of around Sh7,000. I will complete the loan in November.
At the end of the month, I am left with around Sh16,500. My recurring monthly expenditure is as follows: Rent Sh5,500 (includes landlord-controlled power), water and garbage Sh500, mum’s support Sh1,000, shopping Sh4,000, tithe Sh2,400, transport Sh3,000.
I am unable to progress financially, and I feel like I am working for nothing. Sometimes I have to sacrifice basic needs such as bus fare and new clothes just to keep up with my expenses. I can’t even keep a girlfriend because I am always broke. How do I get out of this? Do I quit this job and return to the village? David, 27.
Monicah Mwaniki is the co-founder and chief executive officer of Arvocap Asset Managers
First, I want to congratulate you, David. Surviving and even planning your finances in an expensive city like Nairobi on a Sh27,000 salary is no small feat. It shows that you are disciplined, focused, and serious about your responsibilities. I also want to thank you for your love for your family. Many people your age would have thought only of themselves, but you prioritised helping your mother. That is admirable. I sympathise deeply with you for the loss of your investment.
Be cautious about taking loans to start new ventures. Taking a loan that eats up 26 per cent of your gross salary (Sh7,000 out of Sh27,000) to start a venture you were not fully experienced in was very risky. In business, cash flows are king. You must understand the cash flow cycles before borrowing or starting any new venture.
Additionally, microfinance loans tend to be expensive compared to Saccos or bank loans. If you plan to take another loan, build your credit score carefully, or better still, join a reputable Sacco.
Saccos usually offer lower interest rates and are more forgiving with repayment schedules. Also understand that loans are better used to expand an existing, proven business, not to start from scratch.
You are working but not paying yourself. Right now, your entire income is spent on paying others — your landlord, your transport provider, your shopping bills, even your tithe.
None of it is set aside for you, for your future, your dreams, or emergencies. This is why you feel stuck, and like you’re running in circles. You have two paths forward – cut costs or increase your income.
One practical way to cut costs in Nairobi is through shared housing. Get a trustworthy roommate and share the bills. If you can slash your rent and utility costs from Sh6,000 down to about Sh3,000, you instantly free up another Sh3,000 per month.
Also, carefully audit your shopping list. Buy from wholesale shops, look for supermarket sales, and avoid unnecessary spending.
This small room in your budget can then be channelled into a safe, flexible savings platform like a Money Market Fund to help you start building savings while earning better returns than a regular bank savings account.
Once you complete paying your loan in November, you will have Sh7,000 more available every month. Here’s what you should do. Split the Sh7,000 into two: Use Sh3,500 to enroll for a short professional course. Even a six-month course in sales, customer service, or digital skills can give you an edge and qualify you for better-paying opportunities.
Start paying yourself monthly by putting the remaining Sh3,500 in your MMF savings. Build a reserve fund that can later help you start a side hustle, invest, or even cushion you if you decide to transition to another job. This strategy will ensure that your future dreams are funded without relying on loans.
Unless you have a guaranteed opportunity waiting for you back in the village, do not quit! Nairobi is tough, but it also offers far more opportunities than most villages.
Once you upskill and strengthen your savings, you can either apply for better-paying jobs or start a debt-free side hustle that complements your income. For now, Nairobi is your training ground. Stay a little longer.
David, you have done the hard part — surviving under financial pressure with honour and responsibility. Now it’s time to play smart. Tighten your belt a little more, invest in yourself, and pay yourself first.
In a few years, if you stay disciplined, you will look back and realise that this tough season built the foundation for your breakthrough. Stay strong, keep learning, keep saving. Your better days are ahead.
If you have any money problems, or if you’d like advice on managing your finances, feel free to get in touch at [email protected].
