Kenyan man rebuilds business after sinking into KSh 30m debt, losing house over bank loan

• Edward Kinyanjui walked away from a stable CFO job to build his own empire, but ended up drowning in debt
• With an unpaid loan of over KSh 30 million, his business was on the verge of collapse, and his house was put up for auction
• That was until a conversation with a fellow entrepreneur, who owed nearly half a billion shillings, changed everything

When Nairobi businessman Edward Kinyanjui looked at his books a few years ago, the numbers told a painful story: he was over KSh 30 million in debt.

It was an unfamiliar territory for a man who got employed early in life, rose through the ranks to a Chief Finance Officer (CFO), and earned a good salary for 10 years.

Kinyanjui’s first formal job

In an interview with Unprepared to Entrepreneur, Kinyanjui took a trip down memory lane to where his professional journey began.

As a CFO, sitting in management meetings exposed him to the inner workings of business, and more importantly, sparked an ambition that would change his life forever.

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In 2011, driven by conviction and confidence, he made the bold decision to resign and launch his own enterprise in the renewable energy sector.

The early days showed promise. Within his first year, he secured several large-scale projects, given that he was a known name in the industry.

How Kinyanjui lost his house

However, success on paper did not translate into financial stability. With only KSh 10 million in working capital, funded through a bank loan, cash flow pressures quickly mounted.

Kinyanjui says the strain intensified as obligations grew. At one point, he found himself owing the bank KSh 24 million.

The situation forced him into a heartbreaking decision: selling an apartment he had built as his retirement plan.

“It was a painful decision because it was meant to be my retirement plan. I actually sold it at a loss,” he recalled.

Despite his efforts, the business continued to struggle, and the possibility of returning to formal employment began to feel like the only viable escape route.

Friend’s woes changed Kinyanjui’s mind

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But just as he was preparing to step away from entrepreneurship, an unexpected conversation changed his perspective.

A friend, also a business owner, shared his own financial struggles. Despite appearing successful, he revealed he was carrying a staggering KSh 400 million in bank debt.

The revelation reframed Kinyanjui’s understanding of business survival and resilience. Instead of retreating, he chose to rethink his strategy.

Instead of giving up on the business, he was advised to restructure his loans and rethink his operational model.

How Kinyanjui bounced back

One key adjustment was introducing customer deposits upfront, a move that helped cushion the company against persistent cash flow challenges.

“I also learnt how to work with interns because they are open to learning and their wage bill is not as high,” he shared.

Looking back, Kinyanjui says one of the biggest lessons he has learned is the importance of proper financial records in business.

Without accurate books, he notes, it becomes difficult to build trust with financial institutions or make sound operational decisions.

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Nairobi man scales down from millions in debt

For Mcokelo Koks, what looked like steady success online masked a private struggle with mounting debt, sleepless nights, and the quiet fear of financial collapse.

When his income ground to a halt, the weight of repayment obligations became overwhelming, forcing him to make a radical decision to start over.

He shared his inspiring journey, a painful turnaround that saw him trade comfort for peace but earned him financial freedom.

Source: NgGossips