Finance coach and advisor Margaret Njeri says the most common sources of debt for women are mobile loans, Sacco loans, missed or defaulted chama contributions, credit card debt, and informal borrowing from friends, family and shylocks. Business loans are also a common source of debt.

Debt can have an emotional impact on women, leading to feelings of guilt, shame, and anxiety. Socially, it limits freedom and can lead to isolation for those who feel embarrassed. Economically, it restricts access to savings, investments and growth opportunities, delaying financial independence.

In order to lead a sustainable, debt-free life, she advises listing all debts and their interest rates.

Have a simple loan repayment budget

“Create a simple budget that allocates income toward debt, essentials and small savings,” she says.

The next step is choosing and committing to a repayment strategy. You can start with clearing the smallest debts if you seek motivation, or start with the highest interest rate debts if saving money on interest is a priority.

“To budget realistically while managing to pay off debt, prioritise essentials and cut non-essentials temporarily. Assign a specific portion to debt and automate payments if possible,” she says.

Track your debt monthly     

Tracking debt and progress without getting overwhelmed involves using a manageable spreadsheet, notebook, calendar, or WhatsApp reminders that you update monthly, and celebrating small wins, such as clearing a loan.

Deal with feelings of guilt or shame

“Understand that debt isn’t a moral failure; instead, replace guilt with action by talking to a coach or friend and learn from the experience and rebuild gradually,” she says.

Choose a debt management service

If you feel you are unable to manage the debt, Margaret advises selecting a service company that is registered and regulated with transparent fees and terms, good reviews or word-of-mouth references, and flexible repayment plans.

Some of the government and NGO programs that offer support for women in debt recovery are the Women Enterprise Fund for small business support, the Uwezo Fund for youth and women, and the Kenya Women Microfinance Bank for education programs.

Increase income sources

Income is the fastest way to debt freedom, says Margaret. She advises women to monetise a hobby, apply for better-paying roles, start part-time side hustles online or offline, and rent out underused assets like an extra room for Airbnb.

“A steady side income can accelerate debt repayment, provide a buffer for emergencies, and boost confidence. Consistency, quality service and client referrals are key to stability,” she adds.

Staying out of debt

Margaret believes that women can live completely debt-free after developing habits of accumulating and clearing loans through delayed gratification.

Living below your means, saving before spending, building an emergency fund to avoid future borrowing, having an accountability support system, and questioning purchases are great moves to make.

“A debt-free life means more peace, better sleep, and freedom to save, invest, and pursue dreams without stress. It looks like living within your means, planning and using credit wisely.