Financial Health has achieved increasing prominence as a measure of financial inclusion outcomes in Kenya and globally. Based on global measurement frameworks, the Kenya Financial Health Index was developed in 2016 to track the outcomes of financial inclusion for people’s well-being.
The index was originally developed by FSD Kenya, and subsequently embedded in the FinAccess surveys run in partnership by the Central Bank of Kenya, Kenya National Bureau of Statistics and FSD Kenya.
Financial Health has declined sharply between 2016 and 2021, in stark contrast with Kenya’s rising trends in financial access. Kenya’s declining trend has given rise to debates in policy and industry circles on drivers and policy implications of Kenya’s declining financial health.
A major convening was held in October 2022 hosted by FSD Kenya in partnership with the Central Bank and Kenya National Bureau of Statistics, involving local stakeholders and global experts. The convening aimed to deepen understanding of the Kenya Financial Health Index and its relationship to global frameworks and local context; discuss potential revisions to maximise the robustness and relevance of the index; discuss applications of financial health for policy and industry.