Christmas fever: Five ways to avoid borrowing without a realistic repayment plan

 

The queen of Christmas, her royal merriness Mariah Carey, has declared it is time!  Arguably, the most expensive time of the year is when we kick back and enjoy precious memories with our loved ones. Yet, with inflation soaring and the cost of living showing no signs of easing, many Kenyan households are increasingly turning to digital credit to bridge their financial gaps.

In light of these, here are a few smart tips to help you make the most of the coming weeks and manage to avoid common financial mistakes going into the new year:

Start by setting a price limit for each person to keep your budget on track: Love indeed knows no bounds when it comes to our closest family and friends. Year after year, top gift categories for Kenyans across all income levels include clothing, electronics, and gift vouchers.  However, when expressing this love through gifts, be intentional: decide who you want to gift, what you want to get them, how much each item will cost, then cross-check against your total budget and stick to it.

Avoid last-minute shopping sprees. November was perfect to start your holiday shopping. Be proactive and take advantage of the discounts and offers available in malls and gift shops across the country, and stretch your shilling further. To avoid the stress of last-minute shopping, create a list of what you need and where to find it, then start ticking items off early.  You can even spread out your shopping over several days, as long as you’re done by December 1st. Remember, last-minute shopping often comes with higher prices and limited options, so the best time to get started is now.

 Shop using your financial services provider Christmas rewards coupons: Many financial service providers are offering attractive rewards on debit and credit cards this season. Take advantage of the discounts, cashback offers, or loyalty points available through your bank or any CBK-licensed digital credit provider to save more. The key, however, is to borrow responsibly, always have a realistic repayment plan before taking any loan.

Keep the little costs in mind: While budgeting for the festive season, remember to set aside a small miscellaneous fund to cover extra costs such as fare to Ushago, Mbuzi for the festive choma special, M-Pesa transaction fees, shipping for gifts ordered from abroad, wrapping paper, and carrier bags. These small expenses can quickly add up, so factoring them in helps you stay within your budget and avoid unpleasant surprises later.

Check your account statements and stay on track: Many people shy away from checking their bank or M-Pesa statements during heavy spending seasons like Christmas, preferring not to “spoil the mood.” But financial ignorance is far from bliss—especially if you’re looking to build a strong foundation for 2026. As you shop and spend, regularly review your account statements to stay aware of your balances and ensure you’re living within your financial limits.

 We’ve earned this season of rest, reset, and relaxation. As we celebrate, let’s stay financially disciplined so we can begin the new year stress-free and ready to make even bolder financial resolutions and moves in 2026.  Sticking to your budget during the holidays can be challenging—so be patient with yourself. However, it’s far more difficult to start the new year without a financial footing and with mounting January bills.