Financial gap threatens Kenya's economic future, experts warn

Experts have raised concerns about Kenyans’ ability to "make, keep, and use" money, warning that low financial literacy could hamper the country’s economic growth.

A 2021 survey by EFG Hermes found 38 per cent of Kenya's population is financially illiterate, with many struggling to manage income, savings and debt.

The FinAccess Household Survey 2021 revealed low-income levels, decreasing savings and high debt repayment failures.

“There is a gap in financial literacy blocking many Kenyans from participating and exploiting opportunities at the global stage,” said Collins Tarus, head of marketing at FXpesa.

As the world embraces artificial intelligence and digital trade, experts argue that financial illiteracy limits Kenyans' participation in the global economy.

FXpesa has trained over two million people on financial literacy since 2023, with plans to reach more by targeting the online community through its new podcast series, 'Financially Incorrect.'

“The overall aim is to synchronize public education and awareness efforts, leveraging the unique strengths of all the partners,” said Tarus.

Kenya’s savings rate was estimated at 13 per cent in 2021, far behind Tanzania and Uganda, where the rate exceeds 20 per cent despite lower per capita income.

The 'Financially Incorrect' programme aims to equip individuals and businesses with the knowledge of budgeting, saving, investment, debt management and financial planning.

 Barrack Bukusi, podcast producer and host, explained the initiative also seeks to raise awareness of financial services such as bank credit, insurance and pension requirements.

The project hopes to promote financial stability and independence, contributing to sustainable socio-economic growth.