By Evans Manduku
NAIROBI, Kenya, Sept 15 – For many Kenyan families, financial vulnerability becomes clearest when illness strikes, income falls or an unexpected expense disrupts an already stretched household budget. A medical emergency can quickly consume years of savings, while a sudden loss of income can force a family to borrow simply to meet its daily needs.
We often say that health is wealth. Yet financial wellness, much like physical health, is not
something to consider only when a crisis occurs. It requires regular assessment, preventive action and the discipline to address warning signs early.
In essence, financial wellness is our ability to meet today’s obligations, withstand unexpected financial shocks and still make meaningful progress towards tomorrow’s goals. Just as a medical check-up examines vital signs before illness becomes severe, we should routinely ask whether our finances are showing signs of strength or strain.
Can we meet ordinary household expenses without borrowing? Is our debt reducing or increasing? Could we manage for several months if our income stopped? Are those who depend on us financially protected? And are we saving for longer-term goals?
These questions matter because the warning signs of financial stress often appear long before
a crisis.
The 2025 Old Mutual Financial Wellness Monitor reveals a country living with a striking contradiction. Kenyans remain optimistic and determined to improve their circumstances, even as many households face considerable financial pressure.
Forty-three(43) per cent of working Kenyans report significant financial stress. Four in ten are borrowing to cover day-to-day expenses, while 54 per cent are carrying the same or higher levels of debt than they did a year earlier. These are clear indicators of strain. Borrowing for routine needs such as food, rent or transport is not just a budgeting issue; it is often a sign of deeper financial fragility. So too is debt that does not reduce over time or the absence of any meaningful emergency savings.
Left unattended, such pressures can turn temporary setbacks into long-term financial crises. Yet the findings also reveal encouraging signs of resilience. Ninety-one(91) per cent of working Kenyans have a savings goal, while seven in ten expect their financial position to improve over the next six months. Almost half own or co-own a business, and many are actively seeking additional income streams to support their households. This optimism is important, but it also highlights a key challenge: having a financial goal is not the same as having the capacity to achieve it. Many households are saving while simultaneously servicing debt, supporting relatives and relying on credit to meet everyday needs.
The growth of side hustles and multiple income streams reflects both ambition and pressure. Kenyans are working harder and more creatively to increase income, but additional earnings alone do not guarantee financial security if expenses and obligations continue to rise alongside them.
Controlled Disclosure
Financial wellness is therefore not determined by income alone. It depends on how well we understand our financial position, manage debt, save consistently, protect against risks and plan for long-term responsibilities. A higher income may expand options, but without discipline it can still be overwhelmed by competing demands.
This is why the conversation about financial inclusion must continue evolving. Access to financial services is important, but access alone does not guarantee financial security. The next frontier is ensuring that financial tools help households build resilience and improve outcomes over time.
The starting point does not need to be complicated. It begins with understanding monthly income and expenditure, distinguishing between productive and consumption debt, and building even small but consistent savings habits.
Importantly, saving is only one part of financial preparedness. Some risks are too large for household savings alone. Illness, disability, job loss or the death of a breadwinner can undo years of progress. Financial wellness therefore also means protecting what we have built and ensuring dependants are not left exposed when life changes unexpectedly.
Financial institutions have a critical role to play. Our responsibility must go beyond offering products to enabling better financial outcomes. This means making financial education practical, simplifying access to appropriate solutions and supporting customers at every income level. Ultimately, the measure of a healthy financial system is not just access, but whether households are becoming more resilient, more stable and better prepared for the future.
Most of us would not ignore persistent symptoms in our physical health. We should not ignore them in our financial lives either. The best time to assess financial resilience is not when a crisis arrives, but long before it does.
The writer is the General Manager, Distribution, Old Mutual Life Assurance Kenya Limited
