Many people are making less money, and it is insufficient to pay for their expenses.
According to a study conducted by the investment firm Old Mutual, 70% of Kenyans reported a decline in their income in 2024.
Just three out of ten people are able to pay for their necessities and still have money at the end of the month. In order to survive, the majority of people are using mobile loans, borrowing from friends, or receiving assistance from savings groups.
According to the report, increasing food prices, high taxes, unemployment, and a challenging business environment have all contributed to a decline in economic confidence.
Many Kenyans are consequently altering their financial habits. Some are cutting back on entertainment and eating out, relocating to less expensive homes, or enrolling kids in more reasonably priced schools. To supplement their income, others have launched small enterprises.
Approximately 50% of Kenyans currently own a business, but the majority of these companies lack insurance, putting them at risk in the event of an emergency.
Many people still believe that saving for the future is crucial, even in the face of financial difficulties. Compared to the previous year, more Kenyans are now saving for retirement, but their confidence in having enough money for old age has drastically decreased.
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Arthur Oginga, the CEO of Old Mutual East Africa, asserts that the conventional methods of generating income and managing households are insufficient today.
Instead of depending on regular jobs, more people are figuring out new ways to make ends meet, such as operating small businesses or providing services like food delivery and tutoring.
