April 25th, 2025

On 12^th March 2025, I had the privilege of participating in a panel discussion during the launch of Tala’s 2025 MoneyMarch Report and Campaign. MoneyMarch Report and Campaign. The topic, Investing in the Future: Empowering Everyday Kenyans to Think About Their Tomorrow, provides an opportunity to compare and compliment insights from MoneyMarch with FinAccess

Most importantly, it allowed me to reflect on financial health as an outcome shaped by investments—or the lack thereof. This is the focus of this blog. I hope to have a more in-depth comparison with Tala’s user research manager, Teddy Kahiro, sometime soon. Of course, the key difference between the two surveys lies in their target populations: the FinAccess Household Survey is nationally representative, while MoneyMarch focuses specifically on Tala customers.  One major similarity, however, is the role digital platforms continue to play in shaping how customers engage with financial services.

I shared the panel with Churchill Otieno (Economist, IC Group), Gideon Kipyakwai (CEO, Metropol CRB), and Annstella Mumbi (Tala GM), with the engaging TerryAnne Chebet (centre) moderating the discussion. The Chief Guest was Boniface Kamiti, Manager of Consumer Protection at the Competition Authority of Kenya (CAK), and we also heard thoughtful remarks from Kevin Mutiso, Chair of the Digital Financial Services Association of Kenya (DFSAK).

My focus was on what the 2024 FinAccess Household Survey data reveals about why many Kenyans are not investing in their futures—and the implications this has for the broader economy. While I didn’t get to cover all my talking points during the session, I felt they were important enough to share here. This reflection is especially timely given Kenya’s upcoming National Financial Inclusion Strategy (NFIS), spearheaded by the Central Bank of Kenya (CBK), which places a strong emphasis on improving financial health outcomes.

This blog is framed around the guiding questions we were given—and offers a chance to go deeper into some of the themes that stood out during the discussion. 

Why are Kenyans not investing in their future? 

The simple answer: most Kenyans are financially vulnerable. Only 18.3% are considered financially healthy, which means a staggering 82% struggle to consistently meet their financial needs. This vulnerability is reflected in a sharp decline in long-term investments—from 39.5% in 2021 to just 17.1% in 2024—signaling a clear shift toward short-term survival rather than future security.

Income constraints and over-indebtedness are widespread. According to the 2024 FinAccess Household Survey,  39% of Kenyans reported going without food due to lack of money, with 21% experiencing this multiple times in a single month. Meanwhile, 57% of men and 63% of women have had to reduce their food expenses just to meet financial obligations. Loan defaults are also on the rise, increasing from 10.7% in 2021 to 17% in 2024.

In this environment, credit and savings are being used less for building the future and more for getting through the present. Today, 75% of Kenyans use credit or savings to meet daily expenses—up from 60% in 2016. Financial constraints remain a major barrier to saving, making it difficult to accumulate the kind of resources needed for long-term investment.

But money isn’t the only barrier. A lack of awareness and trust in available investment options also prevents many from exploring wealth-building opportunities. Affordability concerns, limited knowledge, and distrust in formal institutions keep participation low. Only 22% of Kenyans own physical assets like land, livestock, or equipment, and just 15% have pensions or long-term savings.

Instead, informal savings methods—such as investing in livestock or land—continue to dominate. While these are culturally familiar and trusted, they rarely provide the liquidity or returns needed to build lasting financial security.

The economic impact of this trend 

The consequences of this underinvestment trend are far-reaching—both for individual households and for the broader economy. With fewer people making long-term investments, wealth creation is stalling, and economic growth is slowing. Businesses struggle to access the capital they need to grow, which limits job creation and opportunities for upward mobility.

A lack of investment in income-generating assets also restricts wealth accumulation at the household level. Instead, many Kenyans are increasingly dependent on credit just to survive. This has created an unsustainable borrowing cycle: as default rates rise, financial institutions come under pressure, and their capacity to lend diminishes—further slowing economic activity.

Financial resilience remains low. Only 14% of Kenyans can raise KShs 13,000 within 30 days to deal with an emergency. The vast majority must rely on informal support systems—family, friends, donor aid, or government safety nets—which are often stretched thin and not designed for long-term stability.

Looking ahead, the risks are even more severe. With just 15% of Kenyans contributing to pensions or long-term savings, retirement insecurity looms large. Millions face the prospect of financial instability in old age. And without assets to pass on, intergenerational poverty remains entrenched—leaving future generations with the same vulnerabilities and few pathways out. 

How can we change this? 

Tackling these challenges starts with making long-term financial planning more accessible and affordable. This could include introducing low-cost, flexible investment products designed for people with irregular incomes—alongside expanding micro-pension schemes and fractional investment options that allow people to start small.

Financial capability also needs to be strengthened. More Kenyans need exposure to the benefits of long-term saving and investment—paired with stronger consumer protection laws to build trust in financial institutions. It’s not just about awareness; it’s also about confidence.

Importantly, we need to shift the national narrative—from one focused on survival to one that promotes financial growth. That means encouraging small, achievable steps toward the future rather than overwhelming people with distant, abstract goals. Structured savings plans tied to real-life aspirations—like children’s education, business expansion, or home ownership—can make long-term planning feel more relevant and doable.

Finally, incentives matter. Tax benefits for pension contributions and structured investment plans, alongside government-backed savings and investment schemes, could go a long way in encouraging participation and building trust in the system.

The future of Kenya’s financial health 

Long-term financial planning isn’t a luxury—it’s a necessity for economic stability. If we don’t address the root causes of short-term financial focus, we risk an aging population with no safety nets and an economy struggling to sustain growth. The solution lies in financial literacy and capability, responsible credit use, and incentives for long-term savings and investment.

The FinAccess 2024 survey findings highlight concerning trends, but they also provide a roadmap for change. Kenya’s future depends on shifting from a survival mindset to an investment mindset. By implementing the right interventions, we can create a financially healthier, more resilient, and economically prosperous Kenya.

I’m hopeful that the upcoming National Financial Inclusion Strategy (NFIS) will help us take meaningful steps in that direction, should financial outcomes remain at its core.

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Key data for talking points for Tala’s MoneyMatch 2025 report launch

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