NAIROBI, Kenya, Mar 19 – Nearly seven in 10 working Kenyans are engaged in additional revenue generating activities, a new report shows, amid high inflation that has made the cost of goods and services beyond their reach.
The latest Tala MoneyMarch data shows that 64 percent of full-time employees are struggling to make ends meet.
The survey, which sampled 1,000 respondents, adds that consumers borrow for personal expense purposes rather than for business investments, leading to a decline in enterprise ownership and alternative income sources.
However, the report indicates that 75 percent of Kenyan digital credit consumers are optimistic about improving their financial situation in the next six months.
According to Tala Kenya General Manager Annstella Mumbi, in the face of inflationary pressures, findings indicate that Kenyans are standing resilient, leaning more into their entrepreneurial spirit, and remaining hopeful for a better tomorrow.
“As Tala, we remain committed to our mission of supporting the Kenyan majority with innovative financial solutions as well as financial education that will empower our customers to seize growth opportunities and unleash their financial power, boosting our nation’s economy,” added Mumbi.
On savings culture, 77 percent of consumers reported saving regularly or occasionally, a decrease compared to 87 percent in 2022 and 85 percent in 2023.
However, 1 in 3 (30 percent) of them are saving more today compared to six months ago, with the main reason for saving being financial independence.
On financial literacy needs, Kenyans want more guidance on creating a budget to manage expenses, owing to the increased expenditure of more than half (55 percent) of the respondents over the last six months.
Other areas were guidance on starting or growing a business, saving effectively, and healthy borrowing (managing debt).
Tala organizes an annual financial literacy campaign every March named Tala MoneyMarch, which is now in its fourth year.
The campaign aims to educate consumers on making better financial decisions, becoming financially responsible, and using digital credit provider products to improve their lives.
