A recent study highlights that many Kenyans struggle to achieve financial stability as their earnings fail to rise in the face of increasing living costs.
The Old Mutual Financial Services Monitor reveals that nearly all Kenyan consumers are earning the same or less than before the COVID-19 pandemic.
This financial strain has reduced the use of essential financial services like insurance, savings, and investments.
The study, a pioneering effort by Old Mutual Group, aims to revitalize the financial landscape by providing comprehensive insights into Kenyan financial behaviors.
Key findings from the report indicate that 59% of Kenyans prioritize their monthly income for living expenses, a figure that surpasses the African average of 50%.
Debt is notably prevalent, with nearly 70% of consumers holding personal loans.
This debt culture reflects broader financial stress as Kenyans strive to meet daily needs, manage debt, and save for the future amidst economic uncertainty.
The entrepreneurial spirit is alive, with over half of Kenyans owning micro-businesses and 22% engaging in side hustles for extra income.
However, saving for retirement remains a challenge, with only 26% actively doing so, highlighting a lack of confidence in achieving sufficient retirement savings.
Many hope for support from their children in old age rather than relying on government assistance.
Kenyan economic confidence stands at a mere 16%, indicating a pressing need for comprehensive financial wellness support.
Background
Kenya’s GDP (PPP) per capita stands at $6,178 for 2022, positioning it in the middle tier among African countries, reflecting moderate economic development.
In comparison, Seychelles and Mauritius lead with GDPs per capita of $29,837 and $22,240, respectively, indicating higher living standards.
In contrast, Burundi and the Democratic Republic of the Congo have GDPs per capita of $793 and $1,218, showcasing lower economic conditions.
South Africa’s GDP (PPP) per capita is $14,420, more than double Kenya’s, while Egypt and Morocco have higher figures at $13,316 and $10,041, respectively, suggesting better economic well-being.
GDP per capita is a key but not exclusive indicator of living standards; healthcare, education, and infrastructure also critically impact life quality.
More: Kenya news in English, every day from The Rio Times.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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