A disturbing message sent anonymously to blogger Cyprian Nyakundi has exposed what appears to be another grim chapter in Kenya’s growing problem of rogue lenders exploiting desperate citizens.
The message tells the story of a Kenyan who took a loan of KSh 205000 from Momentum Credit in 2020. For nearly two years, the borrower has faithfully been repaying the loan.
Yet, in a shocking twist, when he recently asked for a payoff statement, the company sent him the same amount he borrowed, Ksh205000.
The borrower says he has already paid nearly Ksh600000 as of January 2023. Between 2021 and 2022 alone, he remitted Ksh521000, but the loan balance, according to Momentum Credit, has never changed.
Every complaint, he says, has been met with the same cold response: pay what the statement shows.
“Hello, Cyprian. I have an issue with Momentum Credit. I took a loan of Ksh 205000 and have been paying it for almost two years. When I asked for a payoff amount, they sent me the same KSh 205000 I borrowed in 2020.
Whenever I complain, they tell me to pay the amount as per the statement. I have paid almost Ksh600000 as of January 2023, and I have the statements from 2020 to date. Between 2021 and 2022 alone, I paid Ksh521000, yet the loan balance never changed.
Please expose Momentum Credit because this situation is unfair to customers like us,” part of the message reads as posted by Nyakundi.
If these allegations are true, then Momentum Credit’s actions amount to financial exploitation. In a country where many people are already struggling to survive, this kind of lending practice is both cruel and dishonest.
It is unacceptable for a financial institution to trap customers in endless repayment cycles even after collecting more than double what was borrowed.
Momentum Credit owes the public an explanation. The Central Bank of Kenya and the Competition Authority should move fast and investigate the company. No licensed lender should operate like a backstreet shyster.
Boda boda operators at work. Photo: PeopleDaily Source: Facebook
This case should be a warning to borrowers to always demand transparency and clear repayment records.
For too long, some lenders have used confusion and poor oversight to take advantage of ordinary citizens.
Momentum Credit says it helps Kenyans access opportunities, but if this story is true, it is instead draining lives and destroying trust in the financial system. It is time the authorities acted before more Kenyans fall victim.
