💸 Everyday Money Leaks That Are Keeping Kenyans Broke

 There are some things that we, as Kenyans, love to indulge in on a daily basis often without realizing that they’re quietly messing up our finances. In today’s blog, I’d like to shed some light on these habits that are slowly keeping us poorer with each passing day.

🔁 1. Transactional Charges

Now, I don’t have any grudge against M-Pesa, but if you’re not careful, those transaction charges can really mess you up. And it's not just M-Pesa charges - it’s bank charges too. If you do the math and calculate how much you spend on transactional fees daily, weekly, or monthly, you’ll be shocked. The amount is quite significant.

So, what can you do to avoid these unnecessary charges?

a. Use cash whenever possible.
Unless you’re sending money to someone far away, it’s better to transact in cash. Cash can also help you avoid overspending. Ever noticed how spending cash actually hurts a little? That pinch you feel when handing over physical money can help you hold back from impulse purchases. On the flip side, using your card or mobile money often feels good because it doesn’t “hurt” the same way. In fact, it can feed into that human tendency to seek a sense of power or status. But it comes at a cost.

b. Consolidate your transfers.
If you're sending money to the same person regularly, try to accumulate the amount and send it all at once. The less money you send, the higher the transaction fee (as a percentage). The more you send, the lower the relative charge. Take a closer look next time you’ll see what I mean.

🛍️ 2. Impulse Buying & Lifestyle Inflation

Another common money leak is lifestyle inflation. And the funny thing is, we never see it coming. It creeps in slowly and subtly.

Let me give you an example: you receive a salary increase of KShs5,000. Suddenly, the distance you used to walk to work now feels “too long,” and a daily boda boda ride becomes a necessity. That ride costs KShs100 per day. Multiply that by 30 days, and that’s KShs3,000 gone. From the KShs5,000 raise, you now have KShs2,000 left - and that's before taxes. But in your mind, you're still thinking you have the full raise.

Then you decide your family needs a bigger house. You move from an KShs8,000 house to a KShs10,000 one. Mind you, there was nothing wrong with the previous house, you just felt like “leveling up.”

Now let’s be honest, have you added value to your future with that raise, or have you robbed yourself of a potentially better financial position by taking on unnecessary new expenses?

Here’s the thing most of us don’t understand: money is a tool. You've probably heard that phrase before. But think of it this way—time and energy are also tools, but they require money to be productive. That’s why we say money is the key tool for wealth creation.

The income you receive should be combined with your brainpower, time, and effort to build the life you want. Brainpower means identifying a gap in society and providing a solution.

So here’s my advice:
Whenever you get a raise, act like it didn’t happen. If you were getting along just fine before, continue living that way. Then take a portion of the raise to thank God, and invest the rest. Let it grow. If you were able to afford food, shelter, and decent clothing before, you still can—without making unnecessary upgrades. Don’t let the “status quo” mentality pressure you into a life you can't sustain.

💰 3. High-Interest Mobile Loans (Fuliza, Tala, Branch, Hustler Fund…)

Many Kenyans depend on mobile loans to survive, but what most don’t realize is that these loans come with very high interest rates. And once you start, it’s hard to stop.

Why? Because you probably took the loan to meet a need that you hadn’t budgeted for. Next month, that need still exists and now you also have to repay the loan plus interest. This leaves you with two problems: the original need is still unmet, and now you’ve added a repayment obligation. So you borrow again. And the cycle continues.

That’s how these mobile loans trap you.

The solution?

• Accept your current income level.

• Budget for every shilling.

• Learn to live within your means.

Only you can determine the kind of life you want to live, and it starts with your daily choices.

🙏 When Life Gets Tough…

Sometimes, life gets really hard—I get that. What I personally do when I feel overwhelmed is grab my Bible and start reading. I read a few chapters, then I start praying. Most of the time, I don’t even feel like praying. But the moment I open my mouth and ask the Holy Spirit to help me, the words just start flowing. And sometimes, it's not even words—it’s tears. I cry my heart out for as long as I need, then I rest. After that, I usually feel better and can get back to my work or projects.

There’s beauty in crying out to God. Unlike people, God won’t tell anyone what you’re going through. And He always has a solution.

So remember—it doesn’t matter where you are financially.
You can always change your story if you want to.

🌱 Start Your Financial Journey With Me

I'm passionate about changing the financial situations of Kenyans - especially young people who feel stuck, overwhelmed, or misinformed.

If you’d like to be part of this journey, I invite you to subscribe to my YouTube channel, Financially Fluent, and join the growing family.

🎥 Let’s grow together — one video, one blog, one step at a time.
See you on that end! 💙

Till next time,
It’s been lovely writing to you.

Jacky Mutuma

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