A recent report by Old Mutual has uncovered that 43% of young Kenyans aged 20 to 29 years resort to borrowing money to cover their daily living expenses, despite being employed.
The Old Mutual Financial Wellness Monitor 2025 highlights that many young workers earn a monthly income, but it is insufficient to sustain them throughout the month, forcing reliance on debt to make ends meet.
Financial Pressures and Support Systems
In addition to borrowing, 27% of young Kenyans continue to receive financial assistance from family, friends, or local and international networks, underscoring the importance of social support in managing household finances.
While some youth borrow out of necessity, others take loans to invest in business ventures or purchase stock, with 26% using credit for entrepreneurial activities.
Optimism Amidst Challenges
Despite these financial strains, young Kenyans remain optimistic about their economic future. The report notes an increase in financial satisfaction from 34% in 2024 to 45% in 2025, with 42% earning more than the previous year.
However, gaps persist in financial resilience, particularly regarding emergency savings, retirement planning, insurance coverage, and debt management. Only 36% of young workers have sufficient savings to cover three months without income.
Focus on Savings and Multiple Income Streams
- 97% of young Kenyans have defined savings goals.
- Starting a business is the top priority at 29%.
- Other goals include funding children’s education (21%), purchasing a home (20%), and building an emergency fund (19%).
The findings reflect a trend of youth engaging in entrepreneurship and multiple income sources to improve their financial stability, even as borrowing remains prevalent.
