The lure of instant cash is too hard to resist

By Erick Wamanji

In his book, Merchant of Venice, William Shakespeare writes about a wealthy Jew moneylender. He is widely hated due to the greed with which he lends and gets rich.

Similarly, most shylocks in Nairobi are ruthless, dishonest and expensive.

But every day, hundreds of people flock their ramshackle shops for that all-important financial boost.

Amid all the ugly stories about shylocks, they seem to have an edge and are becoming many day by day.

"Informality. Simple. It is a psychological pre-disposition of people in the low earning ranks to have an inclination for informal things. They hate bureaucracies that come with formal banking. They fear paperwork and probing. Honestly, the banking environment is torturous," explains Mr Sammy Macharia, a consultant on micro-finance.

Macharia says the strict environment in banks puts many off.

"Most of these borrowers also want a personal touch and are aware the much they can lose is a phone unlike banks, which can render someone bankrupt," Macharia says.

He says besides the instant cash, most shylocks suit the low-income earners’ lifestyle. Often, some of the borrowers are not qualified for a bank loan.

The shylock, he says, is also easily accessible.

"Some are just a telephone call away. People in this demographic segment detest the intricacies of running through metallic detectors or mean-looking askaris. Queuing, too, is not leisurely," he says.

At the shylock, there is some sense of familiarity. They are shrewd operators who understand their clients’ experience.

Both the lender and borrower speak the same language.

"Moreover, the working hours are flexible. Most people would come here during the weekend or after official working hours," one shylock says.

The world of shylocks is also shrouded in fear and secrecy. As The Standard on Saturday found out, lenders and borrowers believe they are doing something incorrect.

Borrowers, especially those in formal employment, shy off discussing the matter.

To them, a visit to a shylock is like engaging in illicit and demeaning dealings.

At a stall in Mfangano Street, a shylock told me: "Kwani wewe ni mtu wa magazeti? (You mean you are a journalist?) We do not give interviews. We do not allow our photos to be taken either."

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