• Friday, February 23, 2024
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BusinessDay

Kenya: Half of Kenyans are financially stressed – financial services monitor survey

Navigating unmet financial goals

According to a new report by financial services monitor Old Mutual Group, nearly half of Kenyans have admitted to feeling stressed about their personal finances these days, and the majority of workers—48 percent—said their financial stress has increased since before the Covid-19 pandemic began in March 2020.

The majority of those who report experiencing financial stress claim it has affected their social wellbeing. According to the survey, the majority of Kenyans from the working class are members of the “sandwich generation,” meaning that they are financially dependent on both their parents and their children.

The survey indicates that 58% of working-class people are dependent on their elders, and 75% of them have children. Additionally, the study revealed that

Currently, 46% of adult Kenyans look after their parents and children.

Speaking to The Nation Africa, Nanzala Mwaura, chief growth officer at research firm Ipsos, explained, “The sandwich generation is growing because of two trends; first, life expectancy has moved up, so people are looking after their parents long into their own retirement. Secondly, the children are not getting independent fast enough.”

Another interesting insight from the survey indicates that financial well-being is generally low, with over 41% of Kenyans reporting that they have had to borrow money from friends and relatives to make ends meet and about 38% reporting that they have had to use their savings to cover expenses.

According to the report, forty percent of borrowers utilise their loans for company supplies or equipment, roughly thirty-eight percent borrow for daily requirements, and thirty-three percent borrow for unforeseen costs including home repairs, school fees, and medical bills.

Despite acknowledging the importance of saving for retirement, 74% of Kenyans, according to the survey, are not doing so. Thirteen percent say the government will take care of them in old age, and less than fifty percent think their children will.

Kenyans’ embrace of the gig economy has changed significantly in response to these worries; currently, 22% of Kenyans rely on side gigs, contract work, and second jobs to augment their income.