The Old Mutual Group has unveiled the inaugural Old Mutual Financial Services Monitor (OMFSM), offering in-depth insights into the financial landscape of Kenya.
The OMFSM is crafted to provide a comprehensive grasp of Kenyan financial behavior, empowering individuals to make well-informed decisions.
Key findings from the study reveal that nearly half of Kenyan consumers experience significant financial stress, with only one in ten reporting increased earnings post-COVID-19. Moreover, 59% of Kenyans allocate their monthly income to living expenses, exceeding the African average of 51%.
The report underscores Kenyans’ primary financial concerns, including income security, expense reduction, and debt repayment. It highlights a significant prevalence of debt in the country, with nearly seven in ten consumers having some form of personal loan. This ratio surpasses that of other surveyed markets across the continent, including Ghana, Namibia, and South Africa.
Additionally, the report indicates that over 50% of Kenyans are owners of micro-businesses, and 22% are classified as polyjobbers, individuals who earn supplementary income alongside their primary employment. This data reflects a strong entrepreneurial spirit among Kenyans.
Regarding retirement planning, the survey reveals that only 26% of respondents are actively saving for retirement, the lowest among the surveyed markets. Additionally, nearly 90% of Kenyans lack confidence in having adequate retirement savings. Instead, many rely on the expectation that their children will support them in old age, with only a small percentage anticipating government assistance.
Overall, amidst a recessionary environment, Kenyan economic confidence stands at 16%, trailing behind South Africa (27%) and Namibia (24%), and aligning with Ghana’s (17%) level of confidence.
“At Old Mutual, we believe that knowledge is the cornerstone of financial empowerment. The Old Mutual Financial Services Monitor will serve as a reliable annual indicator of Kenyan financial behaviour, enabling us to create customized financial wellness journeys for our customers as their needs evolve,” said Arthur Oginga, the Group CEO of Old Mutual East Africa.
“After analysing the consumer financial attitudes and behaviours of Kenyans, the necessity for comprehensive financial wellness support is evident, covering day-to-day expenses, debt and income management, and long-term savings. This is a role that Old Mutual already plays but will ramp up to equip more families with the relevant tools to thrive.”