By John K WaDisho
Windhoek, Sept. 19 –Letshego Holdings Namibia has stopped giving out new loans that are paid directly from government workers’ salaries, after the Ministry of Finance stepped in. This comes after a worrying number of suicides linked to debts is also rising in the country.
From now on, all new loans from Letshego will be paid back through debit orders from customers’ bank accounts, and only after a strict affordability check.
For years, “deduction at source” loans were popular among government employees because repayments were automatically taken from their monthly pay. But critics say the system trapped thousands in a cycle of debt, with some workers pushed to the breaking point.
Letshego’s Chief Executive Officer, Dr. Ester Kali, said the company had been preparing for this moment. Since 2016, Letshego has expanded from micro-lending into full banking, offering home loans, savings accounts, and transactional services.
“As of June 2025, our savings and transactional accounts reached N$1.18 billion, while our home loan book stood at nearly N$200 million,” Dr. Kali noted. “Our long-term diversification strategy has made us stronger and more resilient. We remain committed to serving our customers and communities responsibly.”
While the suspension of salary-deduction loans may bring relief to those weighed down by debt, others worry it will make borrowing harder for people who have relied on such loans for years.
Financial experts say the change signals a turning point in Namibia’s lending landscape: quick, easy loans will no longer come without responsibility checks. For many, the decision could save lives; for others, it may close the door to much-needed emergency cash- Namibia Daily News.
