🚨12 COMMON SCAMS THAT TARGET YOUNG PEOPLE (AND HOW TO AVOID THEM)

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🧠 INTRO: YOU’RE A TARGET, NOT A FOOL Young people are smart, tech-savvy—and unfortunately, prime targets for online scammers. From flashy job offers to fake scholarships and “easy money” investments, the digital world is filled with traps that look tempting, especially if you're hustling to earn. This post isn’t here to scare you. It’s here to equip you. We’ll break down the most common online scams that target students, jobseekers, and young professionals—and how to spot them before it’s too late. 🚫 12 COMMON SCAMS THAT TARGET YOUNG PEOPLE (AND HOW TO AVOID THEM) 1. Fake Online Jobs Promising “Work From Home” Riches 👀 What It Looks Like: “Earn KSh 50,000/week working 2 hours a day from home!” These often appear in social media ads or shady Telegram groups. 📌 Real Example: Esther, a university student in Eldoret, paid KSh 1,000 for a “training manual” only to discover the company disappeared after that. ✔️ How to Avoid It: Legit jobs don’t ask for upfront payments. Cross-check...
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STUDENT LOANS: WHAT YOU MUST KNOW BEFORE BORROWING

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Kenyan university student reviewing a HELB loan form with a calculator and budget planner on a desk.


INTRODUCTION: BORROWING FOR YOUR FUTURE


Taking out a student loan is often the first big financial decision many young people make. It can open the doors to higher education—but if misunderstood, it can also create long-term debt and stress.

 “It’s not free money. It’s your future paycheck paying your current tuition.”


Let’s break it down—clearly, honestly, and practically—so you can borrow wisely, if you must.


✅ 1. WHAT IS A STUDENT LOAN, REALLY?

A student loan is money you borrow to pay for school—tuition, books, living expenses—with the agreement that you’ll pay it back later, with interest.

Example:

If HELB lends you KES 40,000 per year, by graduation you may owe over KES 160,000 plus accrued interest.


Your student loan is just the beginning of your financial journey. Here’s a complete guide to personal finance in your 20s to help you stay ahead.”


✅ 2. TYPES OF STUDENT LOANS IN KENYA

a) HELB (Higher Education Loans Board)

This is the most common student loan in Kenya, offered by the government.

Eligibility: Undergraduate or postgraduate students in recognized Kenyan institutions.

Loan Size: KES 35,000 – 60,000 per year.

Interest: 4% annual rate (as of 2025).

Repayment begins: 1 year after graduation.

🔗 Apply for HELB Loan

b) Private Loans (from banks like KCB, Equity)


Often require guarantors or collateral.


Higher interest rates (10%–15%).


Less flexible repayment options.


 ⚠️ These should be a last resort.


✅ 3. UNDERSTAND INTEREST RATES & TERMS


Interest is the extra cost you’ll pay to borrow the money.


HELB: Low interest, but penalties for late repayment.


Private loans: Compound interest (i.e. interest on interest).

Example:

You borrow KES 100,000 at 12% annual interest from a bank.


Year 1: KES 112,000


Year 2: KES 125,440


Year 3: KES 140,492


That’s nearly 40% more in just 3 years if unpaid.


✅ 4. ASK YOURSELF: DO I REALLY NEED IT?

Before signing that loan application, ask:


Can I get a scholarship or bursary instead?


Can my family help with partial support?


Can I work part-time (campus job or freelance)?

Check also our guide on: start saving even on a tight budget 

Real Example:

Faith, a university student in Kisumu, got a partial bursary from her county and took a smaller HELB loan to cover the rest—cutting her total debt in half.


✅ 5. PLAN FOR LIFE AFTER GRADUATION


Repaying your loan is your responsibility, not your future employer’s. Ask:

What salary will I likely earn in my field?

How much will my monthly loan repayment be?

Will I have other expenses—rent, food, transport?

Tip: Use budgeting apps like Monefy or AndroMoney to plan early.


🔗 Monefy Budgeting App – Google Play


Start saving using:Cytonn Money Market Fund or sanlam Kenya money market fund 


Caution: Do your research before venturing into any market fund 


✅ 6. KNOW THE RISKS OF DEFAULTING


Defaulting = not paying your loan as agreed.


What happens if you default?


You’ll be listed with CRB (Credit Reference Bureau).


You may be denied jobs, loans, or even housing.


HELB charges KES 5,000 monthly penalty for late payments.


Real Example:


Brian, a journalism graduate, ignored HELB for 3 years. When applying for a car loan, he was denied due to poor credit.


✅ 7. START REPAYING AS EARLY AS POSSIBLE

Even if you’re still in school, repaying small amounts helps.

HELB accepts early payments.

Start saving from side hustles or HELB refunds.

Example: Jane saved KES 500/month from her online gigs and paid off KES 12,000 of her loan before graduation.


✅ 8. DON’T BLOW YOUR LOAN ON NON-ESSENTIALS

A HELB loan is not meant for:

Buying designer clothes

Hosting parties

Gambling or betting

Use it for:

Tuition and fees

Study materials

Essential living expenses

Check also our guide on Emergency funds 101:

Real Talk:

Those who “enjoyed” their loans often regret it when the repayment letter shows up.

Check also our guide on :10 budgeting hacks for students 

✅ 9. SEEK ALTERNATIVES FIRST

Before you borrow, explore:

County Government bursaries

University work-study programs

NGO education funds

Scholarships from foreign embassies or institutions


🔗 How to Start Saving on a Tight Budget


✅ 10. TRACK EVERYTHING AND STAY INFORMED


Check your loan balance annually.


Keep your contact info updated with HELB.


Read HELB newsletters or visit their site regularly.


🔗 HELB Official Website


Manage your HELB funds using these top budgeting and savings apps in 2025.”


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