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Why do majority of Kenyans fear to borrow money from commercial banks?

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Majority of Kenyans fear to borrow loans from commercial banks because;

  • Banks charge high interest rates for their loans
  • The procedure involved before one gets a loan is lengthy
  • Majority of Kenyans cannot offer security for the loans as required by banks
  • Many people fear the consequences of failing to pay the loan
  • Individuals may have cheaper sources of loans eg. SACCO‘s
  • The rate of interest charged on bank loans are not fixed but can be varied according to prevailing economic situation in the country without consulting the borrower.

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