This paper is application of Freudian Psychoanalysis on four African folktales recorded from Central Kenya. The folktales were audio-recorded from live performances, transcribed from the original Kikuyu language and then translated into English. Specifically, the paper seeks to understand the role of the folktales in human psycho-social development with the assumption that symbolic and structural constitution of the folktales have a bearing on the psycho-sexual maturation of individuals in African societies. This study uses psychoanalytical criticism as the theoretical and methodological framework of analysis. The findings in this study indicate that folktales play a significant role in a people's psycho-social and psycho-sexual development. The unconscious drives of the 'id' are fulfilled in the conscious expression of imagery and symbolism in the folktales helping in the consolidation of the ego and the superego in individuals.