The study used the 42 item version of Ryff’s Psychological Well-Being Scales (Ryff, 1989) todetermine the psychological well-being of women entrepreneurs in Njoro Sub-County, NakuruCounty, Kenya. A stratified random sample of 190 participants was used. Descriptive (frequency distributions, means and standard deviation) and inferential (regression analysis, t- test and chisquare) statistics were used to analyse the data at 95 % level of confidence. The psychological wellbeing for the women entrepreneurs was found to be of medium level (2.50 to 3.69) with a mean of 3.91 on a scale of 1 to 6. The loan defaulters were found to have a lower psychological wellbeing when compared to the non-defaulters and these results were statistically significant . This implies that people with debt problems have a potential risk of reduced mental wellbeing and need psychological counseling. The inclusion of financial counselling services in the WEF loaning procedures wasrecommended.

Keywords : Indebtedness, Psychological Well-Being, Mental Wellbeing, Financial Health